Implementation of LEAN MANUFCTURING At Al- Aqqad Garment Company Prepared By : Ghassan Sleem , Lamia Fahed , Mutaz Abu Eisheh , Razan Atout 1 Outline : About The Company Problem Statement Objectives Literature Review Methodology Results Discussion and Conclusion Recommendations About The Company : Started In 1975 120 Workers Golden Age (1985 – 1999 ) Aqqad Company For Trouser Producing Located In Palestine Nablus Problem Statement: Problem statement WIP Over motion Demand Layout and product flow Lean Waste Waiting time Objectives : Min WIP Reduce Cycle Time Meet The Customer Demand Objectives : Find better layout Reduce Cost Find solution to fluctuating demand Literature Review : is a philosophy of operations management I t is based on three basic ideas: 1. Integration and optimization of the entire manufacturing process 2. Kaizen (continuous improvement) 3. Understand and respond to customer needs TOYOTA PRODUCTION SYSYTEM It was introduced in the Toyota Production System in the 1970s It based on improvement of continuous flow manufacturing, customer-driven production, flexibility, waste elimination, zero defects, visual management, safe and orderly working environment, and customer-perceived quality LEAN MANUFACTURING The study of line balancing ensure that this method is effective tool to improve the throughput of assembly line while reducing non-value-added activities, cycle time , The procedure contain many steps includes calculation of cycle time of process, identifying the non –value added activities, calculating total work load on station and distribution of work load in order to improve the efficiency of line and increase overall productivity. Line Balancing The main purpose of this tool is to reduce time between placement of order by customer and the time of delivery of the product Lead time, according to the VSM theory, is determined by the sum of processing time with the sum of the times that intermediate stocks are standing still in the production line. Value Stream Mapping Literature Review : Literature Review : A suitable forecasting system should also deal with the specificities of the demand: fashion trends, seasonality, influence of many exogenous factors, etc Forecasting A cell is a combination of people, equipment and workstations organized in the order of process to flow, to manufacture all or part of a production unit There are lots of benefits of cellular manufacturing : 1.Reduced work in process inventory 2. Reduced direct labor cost 3. Reduces throughput time and increases velocity for customer orders Cellular Layout Methodology : Factory visit Process Flow chart Processes Timing Layout and Flow between Machines Value Stream Mapping for the existing situation Lead Time for the existing situation calculations Existing Production system Performance Metrics Forecasting Model Building Variation in Capacity for each process Line balancing New layout Value Stream Mapping After line Balancing Proposed Production system Performance Metrics Next year schedule Results Existing Production System Sewing Washing Ironing Packaging Cutting Results Existing Flow Pattern Results Production Department Layout layout of the 2nd floor Results Production Department Layout layout of the 3rd floor Results Process Flow Chart Results flow between machines in second floor Results flow between stations in the third floor for men pants Results flow between stations in the third floor for woman pants Results Processes Timing Women Pants Processes ∑S.A.M = 15.4 minute to produce one classic women trouser ∑S.A.M = 14.6 minute to produce one classic men trouser Results Value Stream Mapping for Existing Production System Results Value Stream Mapping for Existing Production System Results Existing Lead Time for men order throughput time = lead time = 41 hour for 300 classic pants Existing Lead Time for women order Results throughput time = lead time = 42 hrs hour for 300 classic pants Results Existing Production system Performance Metrics ∑S.A.M for women = 15.4 min ∑S.A.M for women = 15.4 min Lead time = 42 hour for women Process velocity for women = (42 hour * 60 min/hour ) / 15.4 min =163.6 Theoretical productivity = 35700 /15 min per pant on avg =2380 85 * 7 hour * 60 min = total available time Efficiency = 1500/ 2380 =60% Max productivity from production manager ∑S.A.M for men = 14.6 min Process velocity for men = 168.5 Lead time = 41 hour for men Results Forecasting Results Forecasting Results Choosing the minimum error between the five methods Forecasting Results Forecasting : 2016 Forecasted Demand using the mixture of seasonal index and exponential smoothing method: Results Production Capacity Variation Lead time = 42 hour for women Results Line Balancing Results Line Balancing Results Line Balancing Results First improvement on layout Results Second improvement on layout Results the area minimized from 1017 m2 to 678 m2 Flow Pattern after line balancing Results Results VSM of preparing back pocket (women)- after line balancing for both women and men, the time in production (sewing) department is three hours Results Proposed Production system Performance Metrics Process velocity for women = (1 hour * 60 min/hour ) / 15.4 min =3.89 Theoretical productivity for women = 1740 /15.4 min per pant on avg =113 pants/hour Efficiency for women = 100/113 =88.5% ∑S.A.M for women = 15.4 min Lead time = 1 hour 29 worker for women 28 worker for men Total available time =29 *1 hour *60 min Target value per hour ∑S.A.M for men = 14.6 min Process velocity for men = 4.1 Theoretical productivity for men = 115 pants / hour Efficiency for men =87% Results Next year Schedule First scenario 1 cell full time 1 cell part time Second Scenario Two cells full time Results Number of cell = Demand / one cell production For Example For Month January = 1 . 2 Indication for number of full cells Indication for over time or extra working days Results For First scenario : will save 1,061,176 NIS yearly Results For Second Scenario : will save 713,103 NIS yearly Discussion and Conclusion No specific sequence of process Production System followed and WIP Maximum 2 order will be in process the order will follow specific path 15-20 order Discussion and Conclusion Number Of Process 27 for men classic jeans 27 for women classic jeans 22 For men classic jeans 23 for women classic jeans Discussion and Conclusion Layout and flow pattern Discussion and Conclusion Flow between machine Used area = 1017 m2 After Reduction = 678 m2 Discussion and Conclusion Number Of Workers and qualifications of worker Before 19 Beginners 28 moderate 38 Expert After 58 workers OR 29 worker + contractors All must be expert workers 85 worker Process velocity and production system Efficiency Discussion and Conclusion Before Process velocity men =168.5 After Process velocity men =4.1 Production system efficiency=63% Process velocity women =3.89 Production system efficiency men cell =87% Production system efficiency women cell =88.5% Process velocity women =163.6 Time spent in sewing department before After Discussion and Conclusion 300 men pants took 41 hours 300 women pants took 42 hours 300 of either men or women will take 3 hours Labor cost 2,805,000 NIS 1,743,824 NIS first scenario 2,091,897 NIS second scenario Discussion and Conclusion Forecasting and scheduling of production No forecasting model or technique existed , the work was planned judgmentally Forecasting model with relatively low error and good accuracy will help to plan and schedule the production and yearly leaves and holidays of workers Discussion and Conclusion Recommendations Documentation with description and graphs should be provided for each process More expert workers should be hired at the first implementation as they have much higher productivity and they are able to produce huge amounts of jeans with non-classic designs The forecasting model should be used and updated monthly to get more accuracy in it, and the results of the forecasting model should be used in capacity planning and in the hiring and firing of the temporary workers. The proposed production system should be implemented as it would save huge in the labor costs and reduce lead, WIP and non-value added activities . The sewing department should be moved to the first floor as this would minimize the total distance and usage of elevator, also the other improvements in the layout should be implemented as it would make the layout rating of the factory better. New machines with high technology should be bought because it was noticed that all the factory machines were at least 20 years old, and for sure the new machines are saving more energy and are faster 5s’s and other lean concepts should be spread in the company as a culture of the work place and should be seeded inside the workers themselves as the can always help in improving the company A new business model should start to be adopted gradually, as the business followed business model is depending totally on pull demand New markets should be studied as possible markets , like Jordan and the Gulf countries New products should be added to the factory’s basket of products; shirts , blouses, coats and other garment products should be added gradually to the production as the variety can assure higher sales and higher customer loyalty Recommendations Thank you  image2.jpeg image6.gif image7.jpeg image8.png image9.jpeg image10.jpeg image11.jpeg image12.png image13.png image14.jpeg image15.jpeg image16.png image17.png image18.png image19.png image20.png image21.png image22.png image23.png image24.png image25.png image26.png image27.png image28.png image29.png image30.png image31.jpeg image32.png image33.png image34.png image35.png image36.png image37.png image38.png image39.png image40.png image41.png image42.png image43.png image44.png image45.png image46.png image47.png image48.png image49.jpeg image50.jpeg image51.jpeg image52.png image53.png image54.jpeg image55.png image56.png image57.png image58.png image59.png image60.jpeg /docProps/thumbnail.jpeg