Ptimization of Lean Manufacturing in PT Berkat Ganda Sentosa

When a company becomes lean in its manufacturing process, the company can increase their productivity and lower their cost. Thus, it will generate more profit for the company. The purpose of this paper is to find and analyze waste during the manufacturing process. Then finding a lean method to reduce the waste. After conducting this research, there is major waste that occurred during the manufacturing process. Scope 8 2. Review of Literature 8 2. Lean Manufacturing 9 2. Seven Waste 9 2. Overproduction 10 2. Failure Modes and Effects Analysis (FMEA) 13 2. Background 13 2. Failures Modes and Effects Analysis Goals 13 2. Failure Modes and Effects Analysis Process 13 2. Benefit of Failure Modes and Effects Analysis 14 2. Research Approach 24 3. Inductive Approach 24 3. Deductive Approach 24 3. Research Approach of Thesis 24 3. Data Collection 25 3. Output Produced 27 4. Waste Found during Manufacturing Process 29 4. Observation 29 4. Interview 34 5. Discussion 34 5. Recommendation 57 References 59 Declaration of Originality 62 Authorization to Lend and Reproduce The Thesis 63 Figure 1 Thesis Writing Process Flow Chart 22 Figure 2 Waste in Cutting Department 29 Figure 3 Unqualified cutting output 29 Figure 4 Waste in Screen Printing Department 30 Figure 5 Unqualified emboss output 30 Figure 6 Unqualified printing color….

………………30 Figure 7 Waste in Sewing Department 31 Figure 8 Incorrect eyelet placement… 31 Figure 9 Incorrect production code placement……………. Figure 10 Waste in Assembling Department 32 Figure 11 Oblique front side pulling… 32 Figure 12Texon pulled not following the pattern……. …………………………32 Figure 13 Current State Mapping 50 Figure 14 Future Stream Mapping 53 1. Introduction 1. The company is a third-party manufacturer so it didn’t have its own brand but producing goods for one brand’s name (Bucki, 2017). The output of the company mostly produced for Taiwan trading company who outsource in Indonesia. There are several reasons why the company chose to outsource from Indonesia. Firstly, Labor cost in Indonesia is relatively low compared to south-east Asian countries. Second, there are many labor availability. Scope The scope will be limited to factory only. Material flow and processes will be studied in this research. Therefore, Supplier and customer process within value chain process will not be included.

Review of Literature This part of the paper will explain the theoretical framework in term of implementation of lean manufacturing in a company. It begins with describing lean manufacturing and seven waste for basic knowledge of this research. Organize material, information, and product flow by efficient value stream using a pull system e. Continuous research for improvement tools and technique to achieve continuous improvement 2. Seven Waste The main focus of lean manufacturing is a waste reduction. Waste refers to non-value added process. It is very beneficial for the company if they can eliminate waste. For example, defect product or mistake that required corrective action as soon as possible. There is 7 categories of waste defined by TaiichiOhno: 2. Overproduction Overproduction is producing goods which exceed the customer’s demand. Overproduction is the worst waste because by having this waste, it can trigger the other 6 waste to appear.

By having overproduction require the company to have additional transportation, longer waiting time, additional motion, etc. For example, the repeated inspection process, an approval process that needed to be agreed by too many people, etc. All customers want a quality product but most importantly it is not a repeated inspection process but how to guarantee quality during the manufacturing process. Inventory This kind of waste can be in the form of material inventory, work in progress (WIP) goods, as well as finished goods which increase expenditure and have not generate income. Late in handling this kind of waste can increase inventory cost, require extra storage space, damaged product, and etc. Motion Motion waste is similar to transportation, but movement refers to the movement of the machinery and operator. It is called fishbone diagram because it has a shape like a fishbone with the muzzle-head facing to the right.

This diagram will show an impact or effect of a problem with various causes. The effect or impact is written in the head. While major causes will be filled within the ribs of the fish and sub-causes will be written in smaller bones off the ribs. Fishbone diagram helps the company to solve the problem thoroughly to the root (Mochal, 2008). Helps identify the root cause of a problem B. Helps generate ideas for the solution of a problem C. Identify action (how) to achieve the desired result Application of fishbone diagram can help the company to find the root cause of the problem especially in the manufacturing industry where it has many processes that potentially lead to the emergence of the problem. If the problem and cause identified, then the solving action will be easier to perform.

With this diagram, everything becomes clearer and allows the company to be able to see the possible cause and look for the root of the real problem. Failures Modes and Effects Analysis Goals The purpose of Failure Modes and Effects Analysis (FMEA) by is as follows: A. Identify and understand B. Assess risk with FMEA and prioritize the problem for further action taken C. Identify and take corrective action to address the most serious problem 2. Failure Modes and Effects Analysis Process The FMEA process is used to analyze manufacturing process and assembly. Safety, reliability, and quality of product improvement B. Company’s images and competitiveness improvement C. Increased customer satisfaction D. Product development cost reduction E. Documenting and tracking actions taken to reduce product risk 2. B. Brainstorming the potential failure Brainstorming will bring up many new ideas about potential modes of failure after understanding the problem.

C. Identify potential failure of each effect Each of failure potential then should be reviewed and identified regarding its effect and impact. This step should be done because it helps the company to have thought of if-then statement. Score The likelihood the Controls will detect a Defect 10 No known controls available to detect the Failure Mode 9 Very Remote likelihood that the current controls will detect the Failure Mode 8 Remote likelihood that the current controls will detect the Failure Mode 7 Very Low likelihood that the current controls will detect the Failure Mode 6 The low likelihood that the current controls will detect the Failure Mode. The moderate likelihood that the current controls will detect the Failure Mode. Moderately high likelihood that the current controls will detect the Failure Mode. High likelihood that the current controls will detect the Failure Mode 2 Very High likelihood the current controls will detect the Failure Mode.

Current controls are almost certain to detect the Failure Mode. Otherwise, it means that corrective action taken did not make any improvement. Value Stream Map 2. Background Approach to understand the flow of material and information during the process, supply chain and operation. It illustrates the process of production from the beginning to the end. It was used to recognize the waste and identify the causes. Value stream map combines the technique and concept of lean manufacturing which helps the company to avoid the bad selection technique. Value stream mapping is a qualitative method that giving a description in detail about how the production facility should be operated. Process of designing value stream map 1. Map making for each process category for the whole value-stream Value stream map making should be according to the actual current state of the company during observation process.

It is required to make detailed for each process category. Data Box A symbol which represents data about cycle time, changeover time, number of workers needed by the machine, and number of the machine. Operator This symbol representing a number of operation which needed in the process. Inventory Indicating number of inventory needed for certain processes. Map making for material flow map and factory overall information Value stream mapping not only includes the flow of material but also the flow of information. In this stage, a symbol that was used in the previous steps will be complemented with a symbol in the table below. Below is shown a graphic that explains the writing process of this thesis. Figure 1 Thesis Writing Process Flow Chart 3. Research Location This research was conducted on PT.

Berkat Ganda Sentosa which a shoe manufacturer. This company is located at 4 Gunung Gangsir Road, Surabaya, East Java. Gabriel, 2013) 3. Deductive Approach On the other hand, deductive research starts from general into specific. This kind of approach also called top-down approach. Research Approach of Thesis The inductive approach will be used in this thesis since researcher will collect the data first and analyze it. After that, the researcher will develop a theory and conclusion about how to become lean manufacturer so the waste can be eliminated. Making Cause-Effect Diagram Cause-Effect Diagram is used to identify the root cause of reason why waste could occur. Making Failure Modes and Effects Analysis (FMEA) diagram This diagram is used to find Risk Potential Number (RPN) to find a solution to come up with. Improvement This is an approach to reduce and minimize the cause of waste during the manufacturing process.

The result of implementation should have a difference (improvement) on the production floor. Research Findings 4. Screen Printing Second stage of shoe manufacturing is screen printing. However, it is not necessary to all of shoes get through into this stages. Just few components get through into this stages depending on desired design of the shoes. The first process of screen printing is creating mold which have certain design which will be print into the shoe material. After the mold is prepared, worker will put color into the mold. Before assemble shoe’s upper and sole, it is necessary to buff the shoe upper first to roughen shoe upper so glue will stick well. After glue was put on it, shoe upper will be put on oven. This process was done three times to make sure that the glue is already dried.

Next, Upper and sole attached into one part. Finally, Shoes will be pressed by hydraulic machine. Figure 3 Unqualified cutting output 2. Screen Printing Figure 4 Waste in Screen Printing Department Out of 2259 screen printing output, there were 83 unqualified emboss output and 210 unqualified printing color (defect). Emboss output become unqualified because the relief of resulting output did not stand out. Whereas, printing color output become unqualified because the output’s color did not match with the shoe specification. Overall, there were 293 defect product comes from screen printing department Figure 5 Unqualified emboss output Figure 6 Unqualified printing color 3. There are three questions were asked regarding waste on the manufacturing process. The following question was a question asked in the interview: 1. What factors are can cause waste to occur? According to interviewee’s answer, they said that many factors that can cause waste during the manufacturing processes such as machine, people, and raw material error.

Is there any waste besides waste obtained from observation? There are still few wastes an accident that was not found on observation. The waste occurs in the packaging department. Because company will take full responsibility of hospital treatment fee. Furthermore, the working station will be empty and cause manufacturing process slower. Discussion 5. Waste Categorization Based on observation and interview result, waste can be categorized as follows: 1. Defect Most of mistake occurred during the manufacturing cause defect output. Define the problem in the fish’s head. Based on existing seven waste, there are 4 major waste occurred on manufacturing waste which are 2. Draw the backbone and ribs. Backbone and ribs indicate the factor that causes waste to occur. Basically, there is three main reasons that cause waste based on an interview which are people, material, and machine.

Inventory Bad quality of raw material is affected by whether from supplier mistake or raw material is in the warehouse for a long time. Some of the material such as polyethylene leather (PU) will flake off in the high room temperature. Defect raw material can cause producing defect product. D. Transportation Transportation becomes waste when it does not create any value in it. Waiting 3. Inventory 4. Transportation 5. Failure Modes and Effects Analysis (FMEA) Diagram A. Identifying each process and product Based on theory, a flowchart of each operation is required when conducting a review of FMEA process. So, 18. of cutting output is a defect product. Screen Printing Based on resulting output quantity, screen printing department in 5 days produced 2259 pieces and it was observed that there was 293defect output. Including unqualified printing color and emboss output which counted 3.

and 9. and 8. respectively. Failure Modes & Effects Analysis (FMEA) Process Name: Assembling No Failure Mode Occurrence (O) 1 Oblique front side pulling 1 2 Texon pulled not following the pattern 1 5. Packaging No data found on observation Failure Modes & Effects Analysis (FMEA) Process Name: Packaging No Failure Mode Occurrence (O) 1 Incorrect product packaging 1 D. Determine the detection rating of each effect Detection rate is determined by how failure can be detected. So, it is easy for a company to detect the error. E. Calculate the Risk Priority Number (RPN) Risk Priority Number (RPN) is obtained by multiplying severity, occurrence, and detection RPN = Severity x Occurrence x Detection Based on theory, there were 3 criteria that should be calculated to form FMEA diagram which are severity, occurrence, and detection rate. Below will be explained rate of each criterion in each department.

Failure Modes & Effects Analysis (FMEA) Process Name: Cutting No Failure Mode Failure Effect Cause S O D RPN 1 Unqualified cutting result Scrap A dull knife, Machine pressure was too strong 7 2 2 28 2 Hand got cut by machine Hospital Treatment Negligence in the working process 10 1 1 10 Failure Modes & Effects Analysis (FMEA) Process Name: Screen Printing No Failure Mode Failure Effect Cause S O D RPN 1 Printing color is changed Scrap Composition of color paint is imbalance 7 1 2 14 2 Finger got wedged by embossing machine Hospital Treatment Negligence in the working process 10 1 1 10 3 Unqualified emboss output Scrap Patterns and mats are not aligned 7 1 2 14 Failure Modes & Effects Analysis (FMEA) Process Name: Sewing No Failure Mode Failure Effect Cause S O D RPN 1 Incorrect eyelet placement Re-process Dull knives, Machine pressure was too strong 3 1 2 6 2 Incorrect production code placement Re-process Negligence on working process 3 1 2 6 3 Finger got impaled by machine Hospital Treatment Negligence in the working process 10 1 1 10 Failure Modes & Effects Analysis (FMEA) Process Name: Assembling No Failure Mode Failure Effect Cause S O D RPN 1 Oblique front side pulling Re-process Negligence in the working process 3 1 2 6 2 Texon pulled not following the pattern Re-process Negligence in the working process 3 1 2 6 Failure Modes & Effects Analysis (FMEA) Process Name: Packaging No Failure Mode Failure Effect Cause S O D RPN 1 Incorrect product packaging Re-shipping Negligence on working process 4 1 2 8 F.

Based on literature review, the cycle time is calculated by averaging the time of completion of a product. Below will show cycle time in each department to produce 1 pair of shoes 1. Cutting Total quantity including defect output produced in cutting department of 8 hours working within 5 days 172 + 171 + 176 + 175 + 169 -159 = 704 Average quantity produced including defect product 704 = 140. Average quantity produced including defect product per hour 140. The cycle time of producing cutting parts for a pair of shoes 3600 = 204. Cycle time to assemble parts for a pair of shoes 3600 = 331. s 10. Packaging Average quantity produced in packaging department of 8 hours working within 5 days 1972 + 1973 + 1969 + 1966 + 1967 = 9847 =1969. Average output quantity produced per hour 1969. Cycle time to assemble a pair of shoes 3600 = 14. Average quantity produced per hour 451. The cycle time of producing screen printing parts for a pair of shoes 3600 = 63. s 56. Sewing Average quantity produced in sewing department of 8 hours working hour within 5 days 368 + 374 + 364 + 371 + 373 = 1850 = 370 5 5 Average quantity produced per hour 370 = 46.

The cycle time of producing sewing parts for a pair of shoes 3600 = 77. Current State Map showed that company needed 708. seconds to produce a pair of shoe. Whereas, in Future stream map shows that company needs a shorter time to produce a pair of shoe which is 691. second. The company has cut their manufacturing process time by 12. Recommendation It is highly recommended for PT. Berkat Ganda Sentosa to improve the working process in every department. Source of waste in the manufacturing process was already found and solve. However, it is suggested for the company to do prevention action start from highest RPN number based on Failure Modes and Effects Analysis (FMEA) diagram. For the human factor, it is suggested for the company to have intense training for a new worker. The company can directly return its product and receive new material as soon as possible.

To prevent raw material from flaking off, First in First out (FIFO) method should be implemented. By using this method, material received in advanced will be used first in the manufacturing process. References Akrani, G. What is Productivity? Definition Meaning. Different types of Fmea and Procedures- Failure mode effect analysis. Retrieved from https://www. knowledgeforyour. com/fmea-failure-mode-effect-analysis/ Do, D. August 5). New Jersey: Pearson Education. Foster, T. Failure Modes and Effects Analysis. In Managing Quality: Integrating the supply chain (p. Pearson. com/blog-entry/changeover-time Julianto, P. A. November 6). August 2017, Unemployment rate increased to 7. million people. In Operation Management (pp. Edinburgh: Pearson educated limited. Slack, N. Brandon-Jones, A. Johnston, R. Retrieved from https://teknikmanajemenindustri. wordpress. com/2013/10/02/value-stream-mapping-vsm/ Zhou, F. May 22). Lead Time vs. As the sole author of this thesis, I authorize Donghua University to lend it to other individuals or institutions for the purpose of scholarly research.

I also authorize Donghua University to reproduce this thesis in photocopy or other means at the request of related government of China. I further authorize Donghua University to store my thesis in the related database for search or reproduce this thesis in photocopy, reduction printing, scanning or other means for the purpose of archive or thesis compilation. Signature of the Student: Date Signature of the Instructor: Date:.