Consultancy Project

Interim Report
Team Members: Ahmed Waqas, Nuzhat Jahan Faheem Hameed, Farhan Ahmed Dated June 23, 2011

OPERATIONS MANAGEMENT
Project/Task Assigned by Client: Implementation of Lean Manufacturing at Air Conditioners Assembly Line
Client: Orient Electronic Pvt. Ltd.

Profile: Orient Group is among the prominent manufacture of home appliances who imports the CKD and SKD units and assemble them locally. The have technical collaborations with Mitsubishi Electric, Mitsubishi Heavy Industries, Samsung, and some Chinese brands which they market in the name of Orient. They are producing the LCD, LED, A/Cs, Refrigerators, Microwave Oven and Water Dispensers

Where we started from !

We studied the various dimensions of productivity improvement;
Increase in Production Reduction in the Cost
By Minimizing Material Wastes Energy Losses Manpower Wastes

Reduction of Wastes
1) Material Waste: Since these are CKD and SKD unites and all components are in finished forms, so no such wastes are applicable in case. Incase of any damaged parts, these are replaced by supplier 2) Energy Wastages (A) Electricity We have observed, during lunch breaks, most of the lights and fans kept running (B) Compressed Gas.Many connections were found leaking (specific places)

Relationship between Method Study and Work Measurement

Method study WORK STUDY (Simplified Work Method) High Productivity Work Measurement (Standard operations time)

Work Study
Work Study the systematic investigation of activities necessary to perform a given task economically. It is management tool for improving the existing method and to establish time standards for various jobs. It can be classified in two areas:
Method Study Work Measurement

Method study It is study of work method i.e how the job is being done. In order to develop and apply easier and more effective work methods and reducing costs. Work Measurement It is the study to determine the time required to perform a job at a defined level of performance.

Principles of Motion Economy

Principles relating to the use of Human Body. Principles relating to the Layout of Work Place. Principles relating to Design of Tools and Equipments

Observations on Production Floor

Since February 2011, we had scheduled visits on Saturdays spending mostly full day or half day on Production Floor. In order to understand - How ACs are actually assembled. - Detailed Procedures and Steps involved in the making of various models.

Observations
Orient has two separate Assembly lines

Number of workers and steps of procedures varies depending upon model and size of A/C. Reference Model for all observations: MSC-18VC (1 Ton Unit) Outdoor Units It has almost 60 worker on the line. It involves about 50 steps Hourly production capacity : 80 Units Indoor Units 34 (including 4 support workers) workers Average Hourly production 80 units Set up time in the morning is about 20 min

Capacity Limitation
Hourly Vacuum Loop Capacity Standard Time to Vacuum 1 unit No of Stations in the loop No of complete rotations for loop in an Hour Total number of units in Hour 15 Min 22 60/15 =4 22*4 =88

Note: The above is calculated for the MSC-18VC unit which is 1300 BTU Equivalent to 1 Ton AC Note: The above is theoretical maximum. Orient target for 80 units/Hr

After, we understood the basics, - Thoroughly studied their existing work methods and - Observed how closely or how accurately they are following principles of motion economy. - Finally we did Time study with two aspects; - In order to identify the idle times, we observed work time on each workstation for each unit including waiting time and transport time. - In order to study the possibility of reducing the time or manpower on line, we observed the actual time being spent on each unit by each worker. -

Final Work Direction Considering the time frame of our project, we selected to work on Indoor units assembly line. After completing our study on work method and time study. We are now working, how to minimize the number or workers on line by effectively combining certain jobs.

Steps 1 2

Process Description Putting Unit on assembly line and removing card box from the unit. Getting pallet board from down lane and adjusting it on the top Hold unit and rotate it on Z-axix. Cut the tape with blade. Put the remote and pack of screws in the box and remove tape Take off packing material and put it in box and take the mounting plate out from the packing and put it on top of Box and remove tapes Holding unit box and putting it on the separate pallet. Remove plastic cover and put it in box and remove tape from his side

6 7

Hold unit, remove top part, put the drain assembly and air filter in the box, Unscrew 2 screws. Hold unit and remove 6 screws help removing top part of unit

8 9 10 11 12 13 14 15

Pick the thermo sensor and take it to separate table where evaporator placed. Fit the sensor with evaporator Fit blower and remove the motor cover and paste assembly card on the box Evaporator Fitting and adjusting it in the unit. Motor fitting into motor cover and putting /fixing it back in the unit Put in 4 screws Adjusting jig to balance the blower, screw in 3 screws and put a small side cover Fit the electrical panel and adjust the motor wiring connection as well as LCD connection Fit the drain assembly and fit the connection of air loover and adjust LCD panel

Steps 16

Process Description Adjust cable and connect in earthing wire and screw in 1 screw

17 18 19 20 21

Connect thermo sensor wire and adjust emergency sswitch. Also put the electrical panel conver Check the erathing by clamping unit to computer to verify the short circuit test Clamp power cable and perform the resting and check voltage, watt and Ampares Put the top of unit back on the body and put tape on the sides to seal Screw in 3 screws and fit the cover of LCD and electrical panel Put 2 screw clips 1 cover clip 1 Air filter Putting the 3 tapes to seal the body Clean unit with cloth

22 23 24

25 26 27

Final inspection and note Bar code on the assembly card and remove assembly card from the unit Put the cover sheet back on the unit and put 2 side packing materials Put the wall mounting plate in the packing and make/rotate unit vertical and put inside card box

28 29 30

Tape the plastic cover and put remote control in packing , rotate unit vertically and put the unit in the ard box Moving pallet to down lane and moving unit forwards to packing machine Rotate box and adjust the strip role machine to put the strip on box

Steps towards Lean Manufacturing

Performance (Testing) loop Capacity Current time set for the 1 complete cycle Number of working Stations in the loop No of Complete rotations in an hour No. of units that can be handled in 1 Hr 20 Min 38 60/20 =3 38*3=114

Note: We know that feed for the performance loop is coming from vacuum loop whose maximum capacity is 80 units/Hr. So we need to reduce the reduce the speed to optimize the solution Proposed time set for the 1 complete cycle Number of Stations in the loop No of Complete rotations in an hour No. of units that can be handled in 1 Hr 25 Min 38 60/25 =2.4 40*2.4=91

Steps towards Lean Manufacturing

Analysis for the work measurement study
Punch machine for time reporting should be installed next to line, it will help avoiding delays at the start up and once back after lunch break and prayer break (if any).

General Recommendation
No Uniform for Workers. Not sufficient ventilation. Industrial scale fans should be installed Workers not wearing comfortable shoes. Lights are not sufficient on the production Floor. During break time, no place to rest. No tea offered. Welding man is not wearing goggles. Material layout is not efficient causing extra movements Man idle times Inefficient movements, i.e. Lifting of condenser from wrong side. Complaints and their follow up is not documented No Complaints clearance report No Preventive Maintenance Slow response of maintenance staff

Energy Efficient Switch Conveyor Belt issues Broken Chain Bus Bars issue and sockets spark Entrance block out of order, manual push Jack, Line Stopper and outlet Sensor are not working. Continueeeed