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PROJECT TITLE Optimizing litho printing sample making process Avery Dennison Lanka

BACKGROUND Avery Dennison Lanka (Pvt) Ltd is a company, which is situated in Biyagama free trade zone. Avery Dennison is a multinational company which is spread among 60 countries over the world. The company ranked number 362 on the 2010 fortune 500 list of the largest U.S. industrial and service companies. The CEO is Dean A. Scarborough. There are around 600 employees working in the company. Avery Dennison develops, manufactures and sells products through four groups of businesses as Pressuresensitive Materials, Retail Information Services, Office and Consumer Products and other specialty converting businesses. This Company's products include pressure-sensitive labelling materials, graphics imaging media, retail apparel ticketing and branding systems, RFID inlays and tags, office products, specialty tapes, and a variety of specialized labels for automotive, industrial and durable goods applications. In Sri Lanka, products are narrowed to labels and tags which give information about a specific garment good. So the customer of this company is garment manufacturers.

OBJECTIVE(S) For the production and operational management project, we mainly focus on the sample production process in the company. x x x SCOPE x Among 5 different label production lines we selected lithography production method and we are mainly focusing on the sample making process of litho printing section. To manage the both sample production and the mass production effectively within the limited facilities. To enhance the quality and the accuracy of the sample. To minimize the lead time of sample making process.

METHODOLOGY x x x Study the existing sample making process and identify weak points which increase the lead time of sample making process. Analyse all the operations and technology involved in making samples in litho printing section. Collecting required data on sample making process, o How the front end handle with customers o How the design centre works on a design o How the current sample making process perform (flow process) o Number of main processes and sub processes o Number of workers and machines o Allocated space o Identifying the skills and experience of labourers o How they assess the quality of a sample Perform a time study to identify the time deployment for each process. Research into more efficient options for sample making process which minimize the lead time and enhance the quality.

x x

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COST BENEFIT ANALYSIS Data Finished samples per month Number of pieces per sample Sample avg. Cost per 1000 pcs = = = = Sample rejection rate Lead time for a single sampling job = = 40 6000 12$ ( 12 115 Rupees)

Rs. 1380.00 30% 12 days

For the current sampling process

Samples rejected per month

= =

40 0.3 12 samples Rs. 12 6000 Rs. 99360.00 12 days

Total losses due to rejection for a month Lead time for a single sampling job Number of samples finished per Month without parallel operations Number of parallel operations

= = = = = = =

2.5 samples

16 parallel operations

Number of successful samples

= =

40 0.7 28 samples

For the expected sampling process According to our objectives we are hoping to improve quality control of the process and reduce the rejection rate up to 20%. Then reduce the lead time up to 9 days.

Expected sample rejection in the current process due to improved quality control Total losses due to rejection for a month Approximate reduction of losses

= = = = =

40 0.2 8 samples Rs. 8 6000 Rs. 66240.00 Rs. 33120.00

After reducing the lead time number of samples Finished per month without parallel operations

= =

3.33 samples

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Total number of finished samples per month with 16 parallel operations Number of successful samples

= =

16 3.33 53 samples 53 0.8 42 samples


Improved rate of successful samples

= =

50 %

We are hoping to reduce the loss due to sample rejection approximately by Rs. 33120.00 .With improving the sample processing rate by 50%, it increases the average number of orders the company gets from the customer per month. So this increases the profit and the efficiency of the company.

OUTCOMES x x x x x Identify the slowest sub operation in sample making process of litho printing section. Suggest a plan to handle both mass production and sample production based on the time requirement and reduce the amount of storage. Reduce the production cost for a sample unit by cutting down the lead time. Achieve customer satisfaction and minimize the losses due to sample rejection by the customer. Project report with set of solutions

SCHEDULE Schedule is attached to end of the report.

CONTACT DETAILS OF THE ORGANISATION Tenith Kanishka Avery Dennison Lanka (Pvt) Ltd Block B, Export Processing Zone, Biyagama, Sri Lanka. Tel: 0773795421 Fax: 0094 11 2465011


NAME D.W.N.M.Amarawardhana K.D.Bandara N.P.A. Gunasekera V.H.Hapuarachchi

NIC MOBILE E-MAIL 890945015V 0712784284 891750307V 0718068255 893053883V 0776153375 892540047V 0773510021

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