Improving the operation of Navana CNG by using Line Balancing

1

1. Process flow:
Task Time Description Booking & preparation for conversion at Conversion Bay Insulation Pre conversion Inspection Issuing Kit, Cylinder and all accessories for Conversion for store per Job card Install Kit & all mechanical, electrical & electronic accessories Install Data plate (metal) & CNG conversion sticker Install cylinder clamps to car. Install shut off valve. Install high pressure pipe & cylinder Gas filling & Gas tuning for all conditions Road test & Pre delivery inspection for any error or modification Check for payment & examine bills challans. Issue instructions manual, warranty card, conversion certificate, cylinder test certificate, gate pass Preceding task -A B

A B C

15 min 10 min 15 min

D

75 min

C

E F G H

10 min 40 min 75 min 25 min

D E F G

I

30 min

H

J

10 min

I

K

15 min

J

Table 1- Process Flow

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Improving the operation of Navana CNG by using Line Balancing 2 2.Process Flow Chart 2 . Process flow chart: A D Booking & Preparation 15 min B Inspection 10 min C Issuing accessories 15 min D Installation of all accessories 75 min E Data plate E Installation 10 min I Road test & pre delivery inspection 30 min I H Gas filling & tuning 25 H min G High pressure pipe & cylinder installation G 75 min F Cylinder clamps & shut off valve installation F 40 min J K 40 min 25 min Payment checks & bills inspection 10 min Issuing all formalities 15 min Process 1.

4 ≈ 6 car per day Labor cost = 5500*3 + 7500*2 + 3000*6 = 16500 + 15000 + 18000 taka per month = 49500 taka per month Labor cost/ car = (49500/6) taka per car = 8250 taka per car 3 . Analysis and Method 3.26 ≈ 5 % Utilization = 320/ (75*6) = 71% % Idle = 29% Output = 8*60/75 = 6.1 Existing process: 40 A D 75 E 50 75 H G I 65 15 K h h h g h h 60min h K K K B F C J Idle time: 35 min 0 min 25 min 0 min 10min Here.Improving the operation of Navana CNG by using Line Balancing 3 3. the bottle neck is the 2nd and 4th station of task D & G. Total active time = 320 min Cycle Time = 75 min Throughput time = 320 min Theoretical minimum number of stations = 320/75 = 4.

7 where tasks I. In this process they can use their effective capacity up to 71%. time =45 Avg. 3. time =50 Idle time: 30 min 10 min 5 min 5 min 0min 4 .2 Approach 1: Setting up parallel stations: Here we are combining tasks C & D together & make two parallel stations out of them to reduce the cycle time. Analysis: In the existing condition Navana CNG Conversion Company operates the process in which they can convert six cars per day having a cycle time of 75 minutes. 25 A C D 90 E 10 G 100 H I 55 J 90 B C D F G 100 H K Avg. The bottleneck is station no. The company expenses 49500 taka per month for labor cost without any additional cost.Distribution of % idle time and % utilization for existing process. J & K are combined together. We have done the same thing with task G & H.Improving the operation of Navana CNG by using Line Balancing 4 Distribution of % idle time and % Utilization: EXISTING PROCESS 29% Idle 71 % Utilization % Idle % Utilization Figure 1.

Here the percentage of utilization has risen up to 83%. 5 .Distribution of % idle time and % utilization for approach 1.7 ≈ 9 per day Labor cost = 5500*3 + 7500*2 + 3000*6 = 16500 + 15000 + 18000 taka per month = 49500 taka per month Labor cost/ car = (49500/9) taka per car = 5500 taka per car Distribution of %idle time and % Utilization: 17% Idle 83% Utilization % Idle % Utilization Figure 2.Improving the operation of Navana CNG by using Line Balancing 5 Total activity time = 320 min CT = 55 min Throughput time = 320 min Theoretical minimum number of stations = 320/55 = 5. In this improvement condition the company expenses are remaining same but the labor cost per car has been lowered than the existing process. Analysis: In this improvement condition we have seen the process in which they can convert nine cars per day by reducing cycle time to 55 minutes.8 ≈ 6 % Utilization = 320/ (55*7) = 83 % % Idle = 17% Output = 8*60/55 = 8.

8 min 3.Improving the operation of Navana CNG by using Line Balancing 6 3.3 min 0. time = 43.3 = 11 car per day Labor cost = 5500*3 + 7500*2 + 3000*6 = 16500 + 15000 + 18000 taka per month = 49500 taka per month Labor cost/ car = (49500/11) taka per car = 4500 taka per car 6 . 6 & 7.3 Approach 2: Increasing parallel stations: Here we are combining tasks D & E together & make two parallel stations out of them to reduce the cycle time. 40 A B D E 85 40 G F H 130 I J 25 85 C D E G H 130 I K Avg.3 = 7. time = 42. We have made tasks G.3*8) = 92 % % Idle = 8 % Output = (8*60)/43.3 min Throughput time = 320 min Theoretical minimum number of stations = 320/43.3 min 0 min 18.3min Total activity time = 320 min CT = 43.3 Idle time: 3.5 130 G H I Avg. This bottleneck stations are station 5. H & I together and make three parallel stations.39 ≈ 8 % Utilization = 320/ (43.

Analysis: In the second improvement condition the number of output has risen up to eleven car per day with 92% utilization of the process. Here station 5 is the bottleneck station.Distribution of % idle time and % utilization for approach 2. D & E together & make three parallel stations out of them. We have combined tasks G. time = 33. time = 35 Idle time: 15min 6.4 Approach 3: Setting parallel stations combining three and more tasks: Here we are combining tasks C.3 minutes. 25 A B D C D E 140 100 C D E G Avg. I & J and made four parallel stations.Improving the operation of Navana CNG by using Line Balancing 7 Distribution of %Idle time and % Utilization: 8 % Idle % Idle 92% Utilization % Utilization Figure 3. 3. By adopting this approach the labor cost per month has been remaining the same amount but labor cost per car has been diminished. H.67 min 0 min 5 min 25min 7 . Here the cycle time has also reduced to 43.33 H I G H I J 140 J C D 100 40 E F 100 G G H \ H H I J 15 140 I J K 140 Avg.

Distribution of % idle time and % utilization for approach 3. Analysis: In the third improvement condition the number of output has raised up to twelve cars per day by having 80% utilization of the process. 8 . Here the cycle time has also reduced to 40 minutes. Here the labor cost per month would be same as the existing process but the labor cost per car would be lower than the previous improvement.Improving the operation of Navana CNG by using Line Balancing 8 Total activity time = 320 min CT = 40 min Throughput time = 320 min Theoretical minimum number of stations = 320/40 = 8 % Utilization = 320/ (40*8) = 80% % Idle = 20% Output = (8*60)/40 = 12 car per day Labor cost = 5500*3 + 7500*2 + 3000*6 = 16500 + 15000 + 18000 taka per month = 49500 taka per month Labor cost/ car = (49500/12) taka per car = 4125 taka per car Distribution of % Idle time and % Utilization: 20% Idle 80 % Utilization % Idle % Utilization Figure 4.

Improving the operation of Navana CNG by using Line Balancing 9 3. we have employed an extra technician. 90 25 C A 90 B C D F D F 115 35 G E 115 G 115 F G H I K 30 J 35 Avg. We have combined tasks F & G and made three parallel stations.67 min 10 min 15min 20min Total activity time = 320 min CT = 45 min Throughput time = 320 min Theoretical minimum number of stations = 320/45 = 7.33 Idle time: 20 min 0 min 6. Here. Station 2 &3 are the bottleneck station.11≈ 8 % Utilization = 320/ (45*9) = 79% % Idle = 21% Output = (8*60)/45 = 10.66 ≈ 11car per day Labor cost = 5500*3 + 7500*2 + 3000*7 = 16500 + 15000 + 21000 taka per month = 52500 taka per month 9 .5 Approach 4: Reducing cycle time by increasing parallel stations: Here we have combined tasks C & D together & make two parallel stations out of them to reduce the cycle time. time = 45 Avg. time = 38.

6 Approach 5: Increasing parallel stations along with addition of workers: Here we have combined tasks C. F & G together & make five parallel stations out of them and also added one technician. 10 .Improving the operation of Navana CNG by using Line Balancing 10 Labor cost/ car = (52500/11) taka per car = 4772 taka per car Distribution of % idle time and % Utilization: 21% Idle 79 % Utilization % Idle % Utilization Figure 5.Distribution of % idle time and % utilization for approach 4. 3. H & I and made three parallel stations. 5 & 6. Here the cycle time has also been increased to 45 minutes. D. Here we have added one technician so that the labor cost per month has been increased and the labor cost per car also has been increased than the previous improvement. 3. Analysis: In the fourth improvement condition the number of output has been reduced to eleven cars per day with 79% utilization of the process. 4. The bottleneck station is station 2. We have combined tasks E.

time = 21. time = 41 Idle time: 16 min 0 min 19.8 ≈ 8 % Utilization = 320/ (41*10) = 78% % Idle = 22 % Output = (8*60)/41 = 11.67 E H I E H 65 I K 65 J 65 E H I 25 B Avg.Improving the operation of Navana CNG by using Line Balancing 11 205 C D F G 205 35 A C D F C D F G e 205 G 205 C D F G E 205 C D F G Avg.7 ≈ 12 car per day Labor cost = 5500*3 + 7500*2 + 3000*7 = 16500 + 15000 + 21000 taka per month = 52500 taka per month Labor cost/ car = (52500/12) taka per car = 4375 taka per car 11 .33 min 16 min Total activity time = 320 min CT = 41 min Throughput time = 320 min Theoretical minimum number of stations = 320/41 = 7.

Improving the operation of Navana CNG by using Line Balancing 12 Distribution of %Idle time and % Utilization: 22% Idle 78 % Utilization % Idle % Utilization Figure 6. We have also added one technician so that the labor cost per month has been increased but the labor cost per car has been decreased than the previous improvement. Comparison of existing process & approaches: % Idle time Exiting process Approach 1 Approach 2 Approach 3 Approach 4 Approach 5 % Utilization 71% 83% 92% 80% 79% 78% Cycle time (min) 75 55 43. of time stations 320 320 320 320 320 320 6 7 8 10 9 10 29% 17% 8% 20% 21% 22% 8250 5550 4500 4125 4772 4375 Table 2. 4.Distribution of % idle time and % utilization for approach 5. Analysis: In the fifth improvement condition the number of output has been increased to twelve cars per day with 78% utilization of the process.3 40 45 41 Output (per day) 6 9 11 12 11 12 Labor cost (Tk.Comparison of existing process & approaches. Here the cycle time has also been decreased to 41 minutes.) per month 49500 49500 49500 49500 52500 52500 Labor cost (Tk. 12 .) per car Throughput No.

Improving the operation of Navana CNG by using Line Balancing 13 5. 13 . So. The more efficiency is gained. If the company wants to increase the overall output level and utilization rate we recommend approach 3 & 4 . it can be concluded that for overall profitability process optimization should not be taken in isolation. the company must hit a middle ground considering potential cost and space requirements to make a wise decision. To set off a balance between cost and output the NAVANA CNG must take a holistic approach. On the other hand. if the company goes for profit maximization with minimum cost at an acceptable utilization rate approach 5 seems best. As we increased the number of parallel stations and combined more tasks into a single basket. the cycle time reduced gradually. Summary & Conclusion From our observation we have attained some key findings. Each one has got some trade-offs. the higher the output level reached. Different company may adopt different policies. which in turn causes utilization rate to go up. there is no single optimal solution. And. To put it briefly. the growth of output level increased the labor cost associated with the number of stations.

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