Graduation Project (2) Operations Improvement For Al-Andalus Factory Supervisor Name: Eng. Suleiman Daifi An-Najah National University Faculty of Engineering and Information Technology Industrial Engineering Department Group Members: Abbas Jibrel Karim Risha Manar Khalil Tala kayed Outline Introduction. Project Description. Methodology and Data collection. Our work. Conclusion. Recommendations. 2 Introduction Al-Andalus factory was established in 1992. They started with manufacturing shoes but in 1997 they switched to producing plastic bags. It is a small family business with 16 employees including the manager. 3 4 Al-Andalus faces many problems due to the absence of integrated operation systems, material handling system, factory layout and management system In this project some tools were used as facility layout, methods engineering and lean manufacturing to support Al-Andalus Company to improve the operation. Project Description Constraints 5 Gathering accurate data and information. Lack of information about the market demand. Weakness of the top management in applying suitable principles in managing and operating the factory. Methodology 6 Data Collection and Analysis. Literature Review. Develop Systems. Supervise the implementation of the developed systems and tools. Reporting. 6 Data collection 7 A toolkit was used for assessing the current situation of the factory. The tool consists of seven areas which are: Inventory management, maintenance, quality control, material handling, safety, facility layout and Material management. Toolkit results Figure 1:Result of the Assessment 8 The figure shows these priority areas with their percentage in details: Result of the Assessment Average Material Handling Layout Material Management Quality Inventory Safety Maintenance التعامل مع المواد تخطيط وتوزيع المساحات إدارة المواد والأدوات الجودة المستودعات السلامة الصيانة 59.977678571428577 57.797619047619044 44.027777777777779 55.850694444444443 52.494588744588739 52.253401360544217 47.202380952380956 Current Situation 9 The next video shows the current situation of the factory. Our work 10 Facility Layout. Warehouse Management. Organizational Structure. Production Planning and Order Fulfilment. Maintenance System. 1.Facility Layout 11 Current Layout: Long cycle time & material handling time. Many obstacles that obstruct the workers. No emergency exits. Many unused areas. Current Layout 12 Figure 2: The current Layout in the factory The following figure shows the current layout in the factory: Layout Improvement 13 Factor Current layout First suggested Second suggested Third suggested Fourth suggested Extra free space 98.33 103.75 126 130 192.124 Less distance travelled 1102.13 1066.17 979.9 883.851 818.067 Extra inventory space 118.85 206.877 146.484 196.777 182.757 Safety exits 0 0 0 1 2 Table 1: Calculations for four layouts 14 Factor Weight Current layout First suggested Second suggested Third suggested Fourth suggested Score Weighted Score Score Weighted Score Score Weighted Score Score Weighted Score Score Weighted Score Extra free space 40% 5.11 2.044 5.4 2.16 6.55 2.62 6.8 2.72 10 4 Less distance travelled 20% 7.4 1.48 7.7 1.54 8.3 1.66 9.3 1.86 10 2 Extra inventory space 30% 5.7 1.73 10 3 7 2.1 9.5 2.85 8.8 2.64 Safety exits 10% 0 0 0 0 0 0 5 0.5 10 1 Total   5.254 6.7 6.38 7.93 9.64 Layout Improvement Table 2: Scores & weight for layouts 15 Layout Improvement Figure 3: Fourth suggested layout 16 Layout Improvement Figure 4: Second floor layout 1 17 Layout Improvement Figure 5: Second floor layout 2 2.Warehouse Management 18 Current status of Warehouse in the factory: Many areas not being using. The raw material, work- in-process and finished products are put together with no order. Raw material is placed between machines. Current Situation 19 Figure6: Work-in-process store Figure7: Raw materials between machines Current Situation 20 Figure8: Raw material, work-in-process finished product Figure9: Packaged products Warehouse Improvement 21 Classification : Location of Warehouses. Storing mechanism. Signs. Safety. Inventory Management: ROP. SS. Warehouse: SOP. The next figures show the suggested location of warehouses 22 Warehouse Classification Figure 10: Location of warehouses 1 23 Warehouse Classification Figure 11: Location of warehouses 2 23 Inventory Management 24 Product   Unpainted Plastic rolls Month 2019 Demand (tons) LDPE (tons) LLDPE (tons) January 10.55 8.757 1.794 February 8.20 6.806 1.394 March 9.44 7.835 1.605 April 11.60 9.628 1.972 May 12.20 10.126 2.074 June 9.952 8.260 1.692 July 12.685 10.529 2.156 August 13.810 11.462 2.348 September 15.971 13.256 2.715 October 12.267 10.182 2.085 November 10.675 8.860 1.815 In this section, Reorder Point and safety stock were calculated depending on demand data. Table 3: Materials Demand for year 2019 (Unpainted Rolls) Inventory Management 25 Constraints: lead time is constant = 2 days demand is variable. Safety Stock (S.S) for LLDPE = 𝑍𝜎𝑑𝐿𝑇 Safety Stock (S.S) = 1.28 * 0.623 * √ 2/26 = 0.22 tons. Reorder Point (ROP) for LLDPE = Average daily usage * L.T + S.S Reorder Point (ROP) = 3.720/26 * 2 + 0.22= 0.506 tons. 26 3. Maintenance System Current status of Maintenance : The factory suffers from a poor maintenance system. There is no preventive maintenance. Interruption of production by frequent breakdowns. 27 Improved Maintenance System This part of the project aims at constructing a maintenance system at Al-Andalus Factory. Figure 12: Corrective maintenance flow chart 28 3. Maintenance System SOPs and Forms were developed to organize and manage all maintenance operations whether preventive maintenance or corrective maintenance. 29 Al-Andalus suffers from lacking a clear organizational structure. The next figure shows the proposed organizational structure of the factory 4. Organizational Structure 30 Figure 13: Proposed Organizational Structure 5.Production Planning and Order Fulfilment 31 Current status of production management: The factory Doesn’t use any scientific methods to organize their production operations. They work randomly. There is no work plan, no goals set for operating purposes, There is a high volume of backlog orders because of bad time management system. The following flowchart shows the sequence of activities for manufacturing plastic bags after applying after applying the enhancement: 32 Figure 14: Enhanced Flow chart 33 5.Production Planning and Order Fulfilment Sales Order Form 34 5.Production Planning and Order Fulfilment Production possibility Testing form. 35 5.Production Planning and Order Fulfilment Production Order Form 36 5.Production Planning and Order Fulfilment Materials ordering form 37 5.Production Planning and Order Fulfilment Quality Assurance form Future Situation 38 The next video shows the future situation of the factory. 39 Conclusion A new layout was designed. A maintenance system was built. Standard operating procedures (SOPs) for maintenance and warehouse systems were created. A clear organizational structure was established. 40 Recommendations It is recommended to implement the deliverables from this project, in addition: Prepare the remaining SOPs that have not been discussed in this project. Continue research and development on procedures and forms. Commitment to safety regulations. Utilize the free space by buying new machines and installing them in that area. 41 image1.emf image2.png image3.png image4.png image5.png image6.jpeg image7.jpeg image8.jpeg image9.jpeg image10.png image11.png image12.png image13.png image14.png image15.PNG image16.PNG image17.PNG image18.PNG image19.PNG image20.PNG image21.png /docProps/thumbnail.jpeg