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# OPTIMIZATION OF OPERATIONS IN THE JOB SHOP

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OPTIMIZATION OF OPERATIONS IN THE JOB SHOP

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### OPTIMIZATION OF OPERATIONS IN THE JOB SHOP

1. 1. BUNTY ENTERPRISES CONTENTS ........................................................................................................................................................3 CHAPTER 1): INTRODUCTION OF THE PROJECT....................................................3 1.1)CONCEPT AND SIGNIFICANCE OF THE STUDY....................................................................................3 1.1.1)CONCEPT:...................................................................................................................................3 1.1.2) SIGNIFICANCE:...........................................................................................................................3 1.2)SCOPE................................................................................................................................................4 1.3) OBJECTIVE OF THE STUDY:................................................................................................................4 1.3.1) PROBLEM DEFINITION:..............................................................................................................4 1.3.2) OBJECTIVES:...............................................................................................................................4 1.3.3) CONSTRAINTS:...........................................................................................................................4 1.4)Methodology.....................................................................................................................................5 1.5) LITERATURE REVIEW:........................................................................................................................6 1.5.1) OPTIMIZATION OF PRODUCTIVITY.............................................................................................6 1.5.2) Productivity and Internal Activity:............................................................................................6 1.5.3) Productivity and External Activity:.............................................................................................7 1.5.4) PROCESS ANALYSIS: .................................................................................................................7 1.5.5) PROCESS MAPPING:..................................................................................................................8 1.5.6) PROCESS MAPPING WITH FLOWCHARTS:..................................................................................9 1.5.7) Value stream mapping:..............................................................................................................9 1.5.8) BOTTLENECKS: ......................................................................................................................11 CHAPTER 2): INTRODUCTION TO ‘BUNTY ENTERPRISES’.......................................12 2.1) ABOUT ‘BUNTY ENTERPRISES’:......................................................................................................12 1
2. 2. BUNTY ENTERPRISES 2.1.2) COMPANY’S OBJECTIVES:........................................................................................................13 2.2) MAJOR SUPPLIERS & CUSTOMERS OF THE FIRM: .......................................................................13 2.3) PRODUCTS ....................................................................................................................................14 2.4) ORGANIZATIONAL ANALYSIS:.........................................................................................................15 CHAPTER 3): PROCESS ANALYSIS:...................................................................................17 3.1) Outline process chart: ....................................................................................................................17 3.2) LAYOUT OF COMPANY........................................................................................................18 3.3) Determination of key processes/operations:.................................................................................20 CHAPTER 4) PROCESS & VALUE STREAM MAPPING .................................................23 4.1) PROCESS MAPPING:........................................................................................................................23 4.2) VALUE STREAM MAPPING : ‘ AS IS ‘ PROCESS...........................................................................25 4.3) BOTTLENECK ANALYSIS...................................................................................................................27 CHAPTER 5) RECOMMENDATIONS & IMPROVEMENTS.............................................28 5.1) RECOMMENDATIONS:....................................................................................................................28 5.1.1) CHANGES IN PLANT LAYOUT:...................................................................................................28 5.1.2) OTHER SUGGESTIONS & RECOMMENDATIONS ......................................................................30 5.2) IMPROVEMENTS ............................................................................................................................31 CHAPTER 6) LIMITATIONS & CONCLUSIONS................................................................32 6.1) LIMITATIONS:..................................................................................................................................32 6.2) CONCLUSIONS................................................................................................................................33 BIBLIOGRAPHY.............................................................................33 .............................................................................................................35 2
3. 3. BUNTY ENTERPRISES CHAPTER 1): INTRODUCTION OF THE PROJECT 1.1) CONCEPT AND SIGNIFICANCE OF THE STUDY 1.1.1) CONCEPT: Auto industry is a very dynamic industry and is constantly flooded with cut throat competition. Companies are leaving no stone unturned to get more profits and market over their competitors. This immense competition has left no space for huge margins and continuous profit. Chakan M.I.D.C.,Pune is growing very rapidly and it is now one of the main destinations for automobile manufacturers in India. Auto industry has resulted in increased auxiliary industries in same area related to spare parts, metal work, machinery and equipment manufactures and so on. Steel prices are continuously increasing hence cost reduction during production seems to be the only way of survival and growth in the market. Productivity = Output / Input. Productivity in the individual enterprise may be affected by a series of external factors, as well as by a number of deficiencies in its operations or internal factors. In a manufacturing concern productivity can be improved by analyzing each operations, their inter relationship with each other, to carry out corrective actions on the problems related to productivity. 1.1.2) SIGNIFICANCE: 1) Production, being the core activity of the organization, any improvement in this front would directly result in improvement of the company’s revenues and bottom line. 2) This implies, to stay in the business, the company has to produce as much as it can from the available resources to reap maximum benefits. Resources can be utilized to optimum level if we study every process ‘as it is’ and ‘as it should be’. 3
4. 4. BUNTY ENTERPRISES 3) Therefore, identification of internal bottlenecks and their elimination is important. The process mapping and value stream mapping can give us better idea of value added and non value added processes. 4) Understanding of the operations of the job shop and improvement in the productivity of the plant is possible due to this study. 1.2) SCOPE 1) To study the existing processes in job shop in Bunty Enterprises. 2) To analyse value added and non added processes in the company 3) To improve productivity, to reach break-even point as early as possible. 1.3) OBJECTIVE OF THE STUDY: 1.3.1) PROBLEM DEFINITION: Title: ‘To optimize the operations on the job shop in Bunty Enterprises’ 1.3.2) OBJECTIVES: 1) To increase productivity of the company with optimum utilization of resources. 2) To study all the processes involved in the production of key product, i.e. bus seats manufacturing and analyze each and every process in detail. 3) To carry out process mapping and draw process flow chart 4) To carry out value stream mapping to find non value added processes 5) To find bottle necks in the process by analysis of above studies 6) To formulate strategies to overcome bottle necks in the operations. 1.3.3) CONSTRAINTS: 1) Tracking all the individual activities in a cycle 4
5. 5. BUNTY ENTERPRISES 2) Maximum available working hours per employee 3) Dealing with increasing prices of steel 4) Customer’s orders need to be delivered on time. 1.4) METHODOLOGY The basic approach adopted was as follows:- 1) PROCESS ANALYSIS: First of all it was required to keenly observe and understand the existing production process in detail. 2) PROCESS MAPPING: All the activities related to the movement of man, material and information at every stage of production has to be studied.A detailed process mapping of the present production process was made and process flowchart is drawn. 3) VALUE STREAM MAPPING: A value stream mapping is done to determine the lower capacity processes which are non value adding and avoidable. 4) BOTTLENECK DETERMINATION: All the data collected was arranged in a structure. A detailed analysis of the data collected was carried out to a) Identify all bottlenecks and non-value adding elements. b) Get the characteristics related to each of these activities. (Time etc.) 5) ACTION PLAN TO OVERCOME BOTTLENECKS: A detailed study of each of the bottleneck / non-value adding activity was done. Considering the practical constraints prevailing, suitable action plans were developed to counter each of the bottleneck / non-value adding activity. 5
6. 6. BUNTY ENTERPRISES 1.5) LITERATURE REVIEW: 1.5.1) OPTIMIZATION OF PRODUCTIVITY Earlier we defined productivity as the ratio of output to input. Let us be more specific and define productivity in relation to industrial activity. Productivity for industrial activity has been defined in many ways, but the following definition proposed by the European Productivity Agency (EPA) in 1958 is the perhaps the best. • Productivity is the degree of effective utilization of each element of production. • Productivity is, above all, an attitude of mind. It is based on the conviction that one can go things better today than yesterday, and better tomorrow than today. It requires never- ending efforts to adopt economic activities to changing conditions, and apply new theories and methods. It is a firm belief in the progress of human beings. In economic terms, productivity refers to the extent to which a firm is able to optimize its management resources in order to achieve its goals. The economic performance of a firm’s business activity can be assessed in terms of profitability or sales income. These activities result from the utilization of management resources. Productivity can be conceptualized in any kind of business activity. Activity consists of output, the conversion process, and input. Although productivity is computed upon the basis of input and output, the main function is how input is converted into output. Productivity therefore indicates the effectiveness of the activities at this point of conversion. The conversion process can be located in all areas of business activity, from sales and corporate planning to calculating wages. Also, managing productivity requires an ongoing effort to do things better each and every day, and this requires in turn a firm belief in the ability of human beings to progress. 1.5.2) PRODUCTIVITY AND INTERNAL ACTIVITY: Productivity is computed mathematically on the rate of inputs and outputs for activities required to achieve a firm’s objectives. Productivity can be analyzed from a management viewpoint, i.e., in terms of how effectively the input was used to produce output. This form of 6
7. 7. BUNTY ENTERPRISES analysis looks at the firm’s performance in terms of power and utilization of management resources. Only the conversion process can produce output out of input. The conversion process defines the firm’s necessary business activity and determines the quality of its output (performance). The conversion process acts upon the management resources that have been installed internally. It can be said, therefore, that productivity is mainly concerned with internal activity. However, external factors like physical or conceptual supply will also influence these internal activities. 1.5.3) PRODUCTIVITY AND EXTERNAL ACTIVITY: All these internal activities for measuring productivity are influenced by external elements such as market demand, political regulation, and competition. The quality of supplied elements such as human resources, funds, and materials will be determined by the capacity of their respective external sources, which are always developing or changing. External supply sources, such as the labor and financial markets, are now global. A global perspective is therefore now required of any analysis of the influence external powers have over the productivity of an internal activity. The quality of the human resources is influenced by the education system and the nature of the process by which they are recruited from the labor market. It is necessary to examine internal activities in order to analyze productivity, but it must be remembered that the input to internal activity is essentially connected with external factors. Although productivity is measured upon the basis of internal activity, it is also essential to analyze factors that influence these internal activities. Major influential factors include government regulations, training and education of human resources, trends in the labor market, money supply, the capacity and nature of the material supply, and managerial ideas. 1.5.4) PROCESS ANALYSIS: An operation is composed of processes designed to add value by transforming inputs into useful outputs. Inputs may be materials, labors, energy, and capital equipments. Outputs may be a physical product or a service. 7
8. 8. BUNTY ENTERPRISES Process can have a significant impact on the performance of a business; and process improvement can improve a firm’s competitiveness. The first step in improving a process is to ‘understand the activities, their relationships, and the values of relevant metrics. Process analysis generally involves the following tasks. 1) Define the process boundaries that mark the entry points of the process inputs and the exit points of the process outputs. 2) Construct a process flow diagram that illustrates the various process activities and their inter- relationship. 3) Determine the capacity of each step in the process. Calculate other measures of interest. 4) Identify the bottlenecks, that is, the step having the lower capacity. 5) Evaluate further limitations in order to quantify the impact of the bottleneck. 6) Use the analysis to make operating decisions and to improve the process. 1.5.5) PROCESS MAPPING: Process mapping is a workflow diagram to bring forth a clearer understanding of a process or series of parallel processes. Before you can improve a process, it’s important to understand it. - It visually represents the work process - Identifies problem areas and opportunities for process improvements - Provides a common understanding of the entire process and specific roles and contributions of process improvements Process maps are good for - Streamlining work activities and telling new people, as well as internal and external customers,”what we do around here”. 8
9. 9. BUNTY ENTERPRISES - helping in the effort to reduce cycle time, avoid rework, eliminate some inspection or quality control steps, and prevent error. - Process maps are a great problem solving tool. It helps us to determine what is problem and what is not. 1.5.6) PROCESS MAPPING WITH FLOWCHARTS: A flowchart is an outline or schematic drawing of the process which researcher is trying to measure or improve. Process mapping with flowchart can be used for following purpose; 1) To understand the steps of a process and the order in which they occur 2) To study some of the duplicated efforts and non-value added steps that might be lurking in the process 3) To clarify working relationship between people and organization. 4) Target specific steps in the process for improvement. Process mapping is mainly useful in measurement and analysis of phases of Lean six sigma methodology. 1.5.7) VALUE STREAM MAPPING: Value stream mapping is all the actions (both value added and non value added) currently required to bring the main flow essential to every product: 1. The production flow material into the arms of customer 2. The design flow concept to launch 9
11. 11. BUNTY ENTERPRISES Fig: 1 VALUE STREAM MAPPING VALUE NON VALUE ADDING NON VALUE ADDING ADDING (AVOIDABLE) (UNAVOIDABLE) Value Stream Mapping divides the activities as shown in the chart. The first step is to rationalize the process by eliminating the avoidable Non Value Adding activities. The second step is to develop a Future Value Stream Mapping eliminating the NVA’s 1.5.8) BOTTLENECKS: According to Goldratt, “An hour lost at a bottleneck is an hour lost for the entire system. An hour saved at a non-bottleneck is a mirage”. In our opinion, this statement captures the essence of the concept of bottleneck. It communicates in very simple terms the crucial role played by bottlenecks. 11
12. 12. BUNTY ENTERPRISES Bottleneck: Definition 1: A bottleneck constrains the performance of a system. Definition 2: A set of constraints with strictly positive average shadow price is defined as a bottleneck. Definition 3: In intermittent manufacturing, it is almost impossible to balance the available capacities of the various workstations with demand for their capacity. As a result some workstations are overloaded and some are under loaded. The overloaded workstations are called bottlenecks. The identification of bottleneck becomes much more difficult as we move from the high volume low variety repetitive manufacturing scenario towards low volume high variety job shops and finally to the project environment. Job shops and projects primarily compete on the dimension of time as opposed to a mass production system where throughput at the lowest cost is the primary concern. CHAPTER 2): INTRODUCTION TO ‘BUNTY ENTERPRISES’ 2.1) ABOUT ‘BUNTY ENTERPRISES’: A Bunty enterprise is situated in MIDC area of Chakan, Pune behind Bajaj Auto Ltd. It is an ISO 9001:2000 certified firm established in August 2008.It is manufacturing supplier of level B where press parts, assemblies, bending, welding, jig fixtures, SPM etc. works are done along with fabrication of bus seats. 2.1.1) QUALITY POLICY: 12
13. 13. BUNTY ENTERPRISES We the members of Bunty Enterprises are dedicated to enhance customer satisfaction. We satisfy our customers by delivering products on time at a competitive price and quality while meeting their needs and expectations with continual improvement in our quality management system. 2.1.2) COMPANY’S OBJECTIVES: 1) Improve customer satisfaction 2) Reduce rejection at in house 3) Reduce rejection at customer end 4) Timely delivery to customers 5) Training to employees 6) Increase turnover 7) Reduce expenses v/s sales. 2.2) MAJOR SUPPLIERS & CUSTOMERS OF THE FIRM: 2.2.1) SUPPLIERS: There are around 74 suppliers who supplies tools, machineries, raw materials like steel, welding wires, CO2 cylinders to the company. Major suppliers are listed below. 1) Bhushan power and steel ltd. 2) Centric steel Ltd. 3) Arihant steel and metal ltd. 4) Essar steel and metal ltd. 5) Pratik enterprises. 13
14. 14. BUNTY ENTERPRISES 6) Precision cuts pvt. Ltd. 7) Trupti gases pvt.ltd. 8) Swati tools 2.2.2) CUSTOMERS: Company’s major customers are within Pune and many of them in Chakan M.I.D.C itself. Some major customers are as follows: 1) Behr India ltd, Pune 2) Deutsche Keeper India ltd, Chakan. 3) Imperial auto industries (IAI), Chakan 4) Minda Valeo securities ltd, Chakan. 5) Vijayjyot seats pvt. Ltd, Talawade. 6) Fiat India ltd,Ranjangaon. 7) Sebros autos ltd.Chakan 8) Arvind Industries,Chakan. 9) NVM Engg. Company 2.3) PRODUCTS Being metal workshop and engineering firm company does different jobs as per the customer’s requirement. Some of the products are listed below: BUS SEATS: 14
15. 15. BUNTY ENTERPRISES 1) School bus seats 2) Marco polo bus seats. 3) Ghana star bus seats. 4) ACGL seats. Along with bus seats it produces metal clamps, liquid clamps, gauges, nozzles, stud, tool for lever, Flank blank, CRCA sheet, bush, die, body for ALFA vehicle, brazing rod and scrap material and sells to different industries in Chakan and Pune area. 2.4) ORGANIZATIONAL ANALYSIS: 2.4.1) STRENGHTS: 1) Company is situated in M.I.D.C. area of Chakan hence it gets power and water in subsidized rate. 2) Chakan M.I.D.C. area comprises very large number of automobile manufacturing and logistics companies. Hence machinery, equipments, tools, raw materials related to business are available in close vicinity itself. 3) Suppliers and customers being in same M.I.D.C. area cost of dispatch and logistics is very low. 4) Bunty Enterprises is level B manufacturer right now. So it can consider forward integration i.e. it can install powder coating and foaming finishing of bus seats in its own company in future. 15
16. 16. BUNTY ENTERPRISES 5) It has various machineries for various metal works like forging, bending, cutting, welding, drilling, spot welding, punching, shearing etc. Hence to avoid idle time of machineries it can accept various kinds of metal jobs and increase turnover. 6) Company has very good tooling section where fixtures and dies of various assemblies are designed and manufactured. Tooling section is well equipped with many types of machinery including surface grinders, cylindrical grinders, lathe machines, mills, cutters and pulleys, DROs. 7) Proper long term planning has been done and accordingly plant and process layout is developed. Hence there is good scope of capacity expansion. 8) Manpower utilization is upto mark. 9) Bunty Enterprises has developed unique bending machine in its own tooling section which is being used in bending department. To improve its performance some modifications are done, which is a part of Kaizen. 10) Inventory management is very effectively done in this firm. 2.4.2) WEAKNESSES: 1) At present production is very less as compared to available capacity. Absence of separate marketing department is being the main cause of it. Company follows make-to-order policy of production. 2) Process layout is not proper in this firm. There is lot of idle time and non value added time of machineries and labors. Lift is not yet functionalized and helpers are employed to provide bended rods, CO2 cylinders to welding department from ground floor to first floor. 3) There is space provided for storage of finished goods. But no warehouses for raw material and W-I-P goods are present. Also scrap materials are not properly stored. 4) Transportation of raw materials and W-I-P is done manually. Trolleys, belt conveyors etc. should be arranged in future. 16
17. 17. BUNTY ENTERPRISES 5) Racks, tooling racks etc. are available but not used properly. Raw materials (steel rods) after every operation are kept on floors. 6) Statistical quality control is used for few months. Now is no more used. More emphasis is given to quantity here and not the quality. 7) Quality is very average. Rejection rate is very high. Revert is approx. 9% and rejection is around 2% on an average. Rework cost is high. Company has to send workers with sprays, welding rods and tools to customers to do rework of some slightly defective finished goods. 8) As company has started its business from last year itself. It has invested lot of capital in land, building, and machineries, set up. Financial constraint is the main cause behind keeping less man power. 9) Company has to pay large amount of Octroi on toll plaza which is just 20km from it. 10) Company uses 90% of contract labors CHAPTER 3): PROCESS ANALYSIS: Scheduling in Bunty Enterprises is flexible scheduling as per the unpredictability of orders. There are different operations carried out as per the requirement of products to be manufactured. Day’s target is always displayed on the Notice board on both floors to convey workers and supervisors the day’s target. Every morning after inspection of entire factory, managing director gives instructions to Supervisor in charge. To give bird’s view of operations needed for manufacturing of bus seats are shown in outline process chart below. Note: Only ‘operations’ and ‘inspections’ are shown by circle and rectangle respectively. 3.1) OUTLINE PROCESS CHART: Fig :2) 17
18. 18. BUNTY ENTERPRISES 3.2) LAYOUT OF COMPANY LAYOUT OF GROUND FLOOR 18
19. 19. BUNTY ENTERPRISES Fig : 3 ) List of operations carried out on ground floor 1) Cutting 2) Bending 3) Spot welding 4) Pressing 5) Shearing 6) Tapping LAYOUT OF FIRST FLOOR: 19
20. 20. BUNTY ENTERPRISES Fig: 4) List of operations carried out on first floor 1) Welding 2) Drilling 3) Grinding 4) Finishing/Polishing 3.3) DETERMINATION OF KEY PROCESSES/OPERATIONS: After observing processes properly some key operations which have to be dealt in detail are determined. 1) Economic consideration: a) Costly operation: Cutting operation here is producing largest scrap/waste. Already steel prices are increasing yet a Bunty enterprise is using manual cutters for cutting metal rods. Replacement of cutting wheels after wear and tear and risk involved in manual cutting are other factors. b) Bottleneck: Bending operation which keeps holding subsequent operations time to time is main bottleneck. In house produced Semiautomatic bending machine is used in this factory which consumes a great deal of time for bending few rods. c) Intense labor work: Transportation of W-I-P from bending machine on ground floor to seat frame welding assembly on first floor is labor intensive and repetitive kind of process. Lift is not yet installed hence large proportion of labor is used in 20
21. 21. BUNTY ENTERPRISES repeated handling and transportation of raw materials like bended metal rods, spot welded metallic meshes, and replacement of empty CO2 cylinder. 2) Technical & technological consideration: Cutting and bending machines used in Bunty Enterprises are semiautomatic in nature and have poor efficiency. 3) Human consideration: Many times cutting wheels breaks-up into pieces during cutting operation due to excessive force applied by labor and those high speed broken pieces of wheels injures labor. Also risk involved in cutting is very high as worker uses his legs and hands to apply force on rods. Transportation of W-I-P from ground floor to first floor and finished goods from first floor to ground floor can not be avoided since this problem is due to poor layout. Key operations, A) Cutting and B) Bending are studied in detail and observations are listed below. A) CUTTING: 1) Cutting operation needs manual force, hence small breaks after regular interval becomes necessary to avoid fatigue involved in repetitive work. 2) Lot of time is wasted in setting machine, carrying tools like screw drivers, measuring tape etc. Also replacement of cutting wheel in case of damage is also time consuming. 3) Inspection of cut rods for its fine cutting and measurement checking is vital and worker does it by himself. 4) Different rods of different dimensions were kept together lying on the floor and worker himself has to search for proper rods for cutting. 5) Sometimes to avoid fatigue worker cuts two three rods simultaneously this causes either defective cutting or wear and tear of cutting wheel. B) BENDING: 21
22. 22. BUNTY ENTERPRISES 1) Semiautomatic machine used for bending purpose in this company needs lot of setting and skilled operator to operate it. 2) There are three bending machines available, but only one is being used due to lack of bending operators. 3) Each new job requires checking for specification and hence inspection becomes important part of this operation to avoid rejection. This inspection is being done by same bending machine operator hence non value added time is increased. 4) To set machine properly so as to obtain proper specified bends on the rods, three-four rods are bended for trial till exact measurement is achieved on machine leading to wastes in metal rods. 5) This is repetitive kind of work which causes fatigue in worker. Actual value added time in this bending operation is very less compared to other operations in Bunty enterprises. 6) Bended rods are not kept in the racks and once again helpers segregate rods of different dimensions and transport them to first floor for welding purpose. 7) Due to flexible scheduling of jobs worker has to do several settings in angles for different rods. Rods needing multiple bends keep machine engaged for larger time. These all factors make Bending operation ‘bottleneck’ in the entire seat making process. 8) Many times welders on the first floor has to sit idle and wait for the bended rods (W-I-P) from ground floor as there is deficiency of material on first floor W-I-P area. 9) As the speed of bending is less as compared to cutting large amount of cut rods kept lying on floor near bending machine for getting bended. Hence W-I-P piles up at cutting end and at the same time there is deficiency of W-I-P for welding process in welding area. 22
23. 23. BUNTY ENTERPRISES CHAPTER 4) PROCESS & VALUE STREAM MAPPING 4.1) PROCESS MAPPING: Raw material Procurement Storage Rods selection (Manual input) Cutting Inspection Bending Spot- 23 Spot yes welding welding Temporary No storage
24. 24. BUNTY ENTERPRISES Delay due to transportatio n Welding stage 1 Welding stage 2 Welding stage 3 Welding stage 4 Welding stage 5 Drilling 24 Delay due to Finished Grinding for slow process goods finishing of drilling storage purpose
25. 25. BUNTY ENTERPRISES 4.2) VALUE STREAM MAPPING : ‘ AS IS ‘ PROCESS. Worker 1 walks Welder 1 picks up and Welder 1 welds (Welding towards raw material racks adjusts rods in fixture stage # 1) He selects rods of specific Welder 1 waits for rods Welder 1 keeps welded dimensions frame on his left side Worker 1 walks back to Helper 2 keeps rods on W-I- Welder 2 picks and fixes cutting machine P area near welder 1 frame on his fixture table He sets the machine and Helper 2 walks with rods Welder 2 welds (Welding adjust job for cutting towards seat frame assembly stage #2) Worker 1 cuts the rod as Helper 2 picks up bended per the measurements Welder 2 keeps welded rods frame on his left side Worker inspects some of Worker 2 keeps bended rod the cut rods Welder 3 picks up and on floor fixes frame on his fixture Helper 1 picks cut-rods After fixing machine angle he continues bending rods Welder 3 welds (Welding stage # 3) Helper 1 walks towards He bends rods and inspects bending machine 2-3 rods after bending Welder 3 keeps welded frame on his left25 side Helper 12keeps rods on of Worker adjusts angle Worker 2 adjusts the job Welder 4 picks up and Worker 2 picks up the rod table bending machine fixes frame on his fixture
26. 26. BUNTY ENTERPRISES Welder 4 welds (Welding stage # 4) FIG: 6) VALUE ADDED Welder 4 keeps welded frame on left side (VA) = Welder 5 picks up and fixes frame on his fixture NON VALUE ADDED Welder 5 welds (Welding ACTIVITY (NVA) = stage # 5) Welder 5 keeps welded frame in W-I-P area VALUE ENABLER (VE) = Helper 3 inspects and marks welded frames for drilling Helper 3 keeps marked frame on his right Drilling machine operator drills the frame Grinding machine operator waits for drilled frames 26 Helper 4 keeps ready frame in Grinding machine operator finished goods area grinds and does finishing
27. 27. BUNTY ENTERPRISES 4.3) BOTTLENECK ANALYSIS Bending operation is ‘bottleneck operation’ as discussed earlier. Detail analysis of bending operation can easily show us how much non value added time is involved in angle setting (by trial and error method) and machine setting. BENDING MACHINE ANGLE SETTING TIME CALCULATIONS: Number of settings required for single two-seater Marco polo bus 12 Approx. time required to set machine angle once 20 sec Time required for machine setting for 1 seat 12 × 20 = 240sec Total number of seats produced per day 60 Total time used in machine setting per day 60 × 240sec = 14,440 s Hence total time used for bending angle setting per day 4 hrs Approx. ( Table 1: Bending machine angle setting time calculations) MARCO POLO BUS (2-SEATER) SEATS BENDING ANALYSIS: Average number of total bends in per hr 120 Total working hrs of company per day 12 Total bends per day 120 × 12 = 1440 Total bends required per 2-seater seat 24 Max. number of seats possible per day 1440/24 = 60 ( Table 2: Marco polo bus (2-seater) seats bending analysis) 27
28. 28. BUNTY ENTERPRISES CHAPTER 5) RECOMMENDATIONS & IMPROVEMENTS In job shops like Bunty Enterprises generally scheduling is highly tough job. As different jobs has to be simultaneously for different customers. Hence proper planning of material flow and management of time holds the key for optimization of operations. 5.1) RECOMMENDATIONS: Process mapping and Value stream mapping was studies in detail along with timings of each operation in the seat frame assembly manufacturing. It was seen that the material flow was haphazard during operation. Wherever possible, changes are done to streamline the movement of labor and material. Value stream mapping is analyzed properly and avoidable non- value adding steps are removed. 5.1.1) CHANGES IN PLANT LAYOUT: Following changes are recommended in plant layout. Ground floor layout: 1) There has to be separate sections for Pressing jobs and Seat frame assembly job to make workplace more organized and to streamline the process properly. Hence positions of Shearing machine and bending machines are interchanged. 2) Steel rods are kept on left side racks of Cutting and bending machines in proper shelves so that ‘seat frame assembly’ operations can be optimized. 3) Raw material place on right side of entrance is divided in two sections viz. large part for pressing work and small for keeping metal sheets for shearing jobs. Fig. 7) New layout of Ground floor 28
29. 29. BUNTY ENTERPRISES First floor layout: 1) Welding assembly stages started from left to right instead of right to left 2) Grinding and drilling machines arranged in sequence followed by welding operations 29
30. 30. BUNTY ENTERPRISES Fig. 8) New layout of first floor 5.1.2) OTHER SUGGESTIONS & RECOMMENDATIONS Apart from changes in layouts, some more suggestions and recommendations were gives which are as follows. 1) Tool racks and raw material racks were present, but were not utilized properly. Proper neatness and cleanliness in required in work place. 30
31. 31. BUNTY ENTERPRISES 2) Raw materials (rods) for seat frame assembly should be staked in shelves properly as per their lengths and thickness. Rods should be kept from up to down as per increasing lengths. Stacks are placed lengthwise parallel to wall so that less place is occupied by them. 3) There has to be clear cut boundaries for one kind of job operation. Seat frame assembly operation is sequenced in an order to reduce movement of W-I-P. 4) To improve cutting operation, worker should cut at least 10-15 rods depending on lengths so as that bending operator need not require to change angle of machine several times in a day. 5) Whatever tools are required for cutting and bending operations (e.g. hammer, screw driver, measuring tape, cutting wheels etc.) should be kept near to workers so that unnecessary movement of workers is minimized and time is saved. 6) If possible new semiautomatic or automatic cutting machine should be bought to reduce risk involved in manual cutting and to improve quality of cutting. 7) Pressing machines should be kept in a sequence from 250tonne to 20tonne capacity in decreasing order from raw material area so that transportation of heavy raw material within working area is minimized. 8) There should be separate columns of finished seats lines facing towards lift, to avoid delay in delivery of orders. 9) Welders should be provided new gloves time to time. Safety comes first. 10) Increase labor for bending pupose. 5.2) IMPROVEMENTS Some of the changes are carried out and their effect has been studied. 1) Cleanliness and neatness is maintained. Tools are kept on the racks near the workers. 2) One labor and two helpers are increased. Labor is used as additional bending operator. One helper is used for carrying W-I-P to first floor from ground floor, second helper for housekeeping. 31
32. 32. BUNTY ENTERPRISES 3) Whatever small changes in layout were possible as a initial step were carried out. 4) Waiting time of welders and grinding operator reduced maintaining proper buffers. MARCO POLO BUS (2-SEATER) SEATS BENDING ANALYSIS AFTER CHANGES: Average number of total bends in per hr 180 Total working hrs of company per day 10 Total bends per day 180 × 10 = 1800 Total bends required per 2-seater seat 24 Max. number of seats possible per day 1800/24 = 75 ( Table 2: Marco polo bus (2-seater) seats bending analysis) RESULTS: 1) Working hours of labors reduced by 2 hrs, increased their motivation level. 2) Number of seats produced per day increased. 3) Testing of changes recommended is done. CHAPTER 6) LIMITATIONS & CONCLUSIONS After doing analysis of value stream analysis and carrying out initial changes in operations leads to following limitations and conclusions: 6.1) LIMITATIONS: 1) As Bunty Enterprises is in its nascent stage of growth, orders required are less. So implementing complete turnaround is not mandatory now. Very limited past data was available for study. 2) Existing customers who have stringent quality requirement do not place orders second time. Importance to production quantity is given more rather than quality. 32
33. 33. BUNTY ENTERPRISES 3) Revert is high, rework is high. Scrap management valuation was not done. So determining wastage in financial term was difficult. 4) Marketing department is not yet developed. Human resources training are not done. Contract labors are used in more number. So not much inputs from labors related to trends of production. 5) Financial constraint, due to recent establishment. So only production related problems tackled. 6) Pressing machines are underutilized, and seat frame assembly was not streamlined and so time and motion studies could not be done. 6.2) CONCLUSIONS Bunty Enterprises has a large potential. It is situated in very good M.I.D.C. where it can get large business in future. It should improve its marketing department. Bunty Enterprises utilizes its R & D and tooling section properly. It has created unique semi-automatic bending machine which can be sold to potential customers. It should keep improving this tooling section further to provide customers all fixture requirements. It should optimize its operations using basic principles of scientific management by Taylor as it is in its initial stage and Job shop format. More emphasis on improvement of quality should be given. Revert and rejection should be minimized. They have stopped using statistical quality control, they should restart applying it. In this project process mapping and value stream mapping are done to understand non value adding activities and those are removed to optimize the operations in job shop of Bunty Enterprises,Chakan. BIBLIOGRAPHY BOOKS BOOK NAME AUTHOR PUBLICATION 1) Introduction to work study George Kanawaty Universal Publishing 2) Operations management Russell and Taylor Pearson publications 3) Motion & time study: Marvin E.Mundel Prentice-Hall of India Improving Productivity 33
34. 34. BUNTY ENTERPRISES WEBSITES: 1) www.leedsmet.ac.uk/lis/imgtserv/tools/timestudy.htm 2) www.fpm.iastate.edu/worldclass/process_mapping.asp 3) www.elsmar.com 34
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