PRODUCTIVITY IMPROVEMENT VIA SIMULATION METHOD (MANUFACTURING INDUSTRY) HASBULLAH BIN MAT ISA

PRODUCTIVITY IMPROVEMENT VIA SIMULATION METHOD (MANUFACTURING INDUSTRY) HASBULLAH BIN MAT ISA Thesis submitted in fulfillment of the requirements for the award of the degree of Bachelor of Mechanical Engineering with Manufacturing Engineering Faculty of Mechanical Engineering UNIVERSITI MALAYSIA PAHANG DECEMBER 2010

ii UNIVERSITI MALAYSIA PAHANG FACULTY OF MECHANICAL ENGINEERING I certify that the project entitled Productivity Improvement via Simulation Method (Manufacturing Industry) is written by Hasbullah bin Mat Isa. I have examined the final copy of this project and in our opinion; it is fully adequate in terms of scope and quality for the award of the degree of Bachelor of Engineering. I herewith recommend that it be accepted in partial fulfilments of the requirements for the degree of Bachelor of Mechanical Engineering with Manufacturing Engineering. Dr Mahadzir bin Ishak @ Muhamad... Examiner Signature

iii SUPERVISOR S DECLARATION I hereby declare that I have read this project report and in my opinion this project report is sufficient terms of scope and quality for the award of the degree of Bachelor of Mechanical Engineering with Manufacturing Engineering. Signature :.. Name of Supervisor : MR. HADI BIN ABDUL SALAAM Position : LECTURER Date : 06 DECEMBER 2010

iv STUDENT S DECLARATION I Hasbullah bin Mat Isa declare that this report entitled Productivity Improvement via Simulation Method (Manufacturing Industry) is the result of my own research except as cited in the references. The report has not been accepted for any degree and is not concurrently submitted in candidature of any other degree. Signature :.. Name of Student : HASBULLAH BIN MAT ISA Id. Number : ME 08014 Date : 06 DECEMBER 2010

vi ACKNOWLEDGEMENTS First of all, I have to readily acknowledge and thank to Allah, The Omnipotent and Omniscient who created everything and in giving me the ability to start and complete this project. I also wish to express my sincere appreciation to my supervisor, Mr. Hadi bin Abdul Salaam, for his guidance, advices, motivation, and critics. Without his help and support, this thesis would not have been the same as presented here. I want to thank to my family, and all of my big family, for their affection, prayer, and support throughout my study. Without them, this work of mine will never be a success. Last but not least, I would also like to thank Pn. Zaniriah and En. Israyana from Hirose (M) Sdn. Bhd. This study would not be complete without the support that was obtained from the case study company. Thank you for all the help and advice given.

vii ABSTRACT Productivity improvement plays an important role in determining whether a company can survive in the future based on customer demands that it can fulfill. In this respect, simulation can be utilized as a what-if analysis tool to decide which productivity improvement strategies to be adopted. This thesis presents a simulation of the current performance of outputs and profits using WITNESS simulation software. The main objective of this project is to demonstrate the use of simulation in analyzing the existing production floor performance and in evaluating various alternatives to overcome the existing problem. This project is conducted in an electronic connector manufacturing company located in Shah Alam, Selangor. The production line involved in this project is the assembly line for FX15 model while the product involved in this study is connector manufactured. First, a simulation study on the existing production line is carried out to evaluate the production floor performance. Results of the study revealed that the current production floor was suffering from time working handling. From here, a total of 3 alternative layouts were proposed and they were simulated to determine their effect on the production performance. One way ANOVA test with multiple comparisons was conducted to select the best result. The results again showed a significant difference between each alternative layout and the best alternative to improve the existing production line is the Alternative layout III with productivity increment of 9.15% higher the current situation.

viii ABSTRAK Peningkatan produktiviti memainkan peranan penting dalam menentukan apakah suatu syarikat dapat bertahan hidup di masa depan berdasarkan permintaan pelanggan yang dapat dipenuhi. Dalam hal ini, simulasi boleh digunapakai sebagai bahan analisa untuk menentukan strategi peningkatan produktiviti akan diterima. Tesis ini menyajikan simulasi prestasi semasa dan keuntungan menggunakan simulasi Witness ini. Tujuan utama dari projek ini adalah untuk menunjukkan penggunaan simulasi dalam menganalisa prestasi agi meningkat pengeluaran yang ada dan dalam menilai pelbagai alternatif untuk mengatasi masalah yang ada. Projek ini dilakukan di perusahaan pembuatan penyambungan elektronik yang terletak di Shah Alam, Selangor. Barisan pengeluaran yang terlibat dalam projek ini adalah untuk model FX15. Pertama sekali, sebuah kajian simulasi di pusat pengeluaran yang ada dilakukan untuk menilai prestasi pengeluaran. Keputusan kajian menunjukkan bahawa pengeluaran semasa memnunjukkan masalah utama yang berlaku adalah kerana masa pengendalian pekerja. Oleh itu sebanyak 3 alternatif susun atur yang dicadangkan dan disimulasikan untuk menentukan pengaruhnya terhadap prestasi pengeluaran. Salah satu cara uji ANOVA dengan beberapa perbandingan dilakukan untuk memilih keputusan yang terbaik. Keputusan kembali menunjukkan perbezaan yang signifikan antara setiap alternatif dan alternatif terbaik untuk meningkatkan pusat pengeluaran yang ada adalah susun atur yang ke III dengan kenaikan produktiviti sebanyak 9,15% lebih tinggi situasi semasa ini.

ix TABLE OF CONTENTS EXAMINER S APPROVAL SUPERVISOR S DECLARATION STUDENT S DECLARATION DEDICATION ACKNOWLEDGEMENT ABSTRACT ABSTRAK TABLE OF CONTENTS LIST OF TABLE LIST OF FIGURE LIST OF SYMBOLS LIST OF ABBREVIATIONS LIST OF EQUATIONS Page ii iii iv v vi vii viii ix xiii xiv xv xvi xvii CHAPTER 1 INTRODUCTION 1.1 Introduction 1 1.2 Background of Project 2 1.3 Problem Statements 2 1.4 Objectives 3 1.5 Scopes 3 1.6 Important of the Project 3 CHAPTER 2 LITERATURE REVIEW 2.1 Introduction 4 2.2 Manufacturing Industry 5 2.2.1 History of Manufacturing 6 2.3 Plant Layout 7 2.4 Facility Layout Planning 8

x 2.5 Objectives of Facility Layout Planning 8 2.6 Factor Affecting Facilities Layout Planning 9 2.6.1 Material 2.6.2 Machinery 2.6.3 Labor 2.6.4 Material Handling 2.6.5 Waiting Time 2.7 Importance of Plant Layout 11 2.8 2.9 2.10 2.11 Traditional Types of Facilities Layout 2.8.1 Process Layout 2.8.2 Product Layout 2.8.3 Fixed Position Layout 2.8.4 Group Technology Layout Step in Simulation Study 2.9.1 Problem Formulation 2.9.2 Setting of Objective and Overall Project Plan 2.9.3 Model Conceptualization 2.9.4 Data Collection 2.9.5 Model Translation 2.9.6 Verified? 2.9.7 Validated? 2.9.8 Experimental Design 2.9.9 Production Runs and Analysis 2.9.10 More Runs? 2.9.11 Documentation and Reporting 2.9.12 Implementation Simulation Characteristic 2.10.1 Benefit of Simulation 2.10.2 Application of Simulation Previous Research 2.11.1 Summary of Previous Research 9 9 10 10 10 11 11 13 15 17 19 19 20 20 20 21 21 21 22 22 22 22 22 24 24 24 25 30 CHAPTER 3 METHODOLOGY 3.1 Introduction 32 3.2 Project Methodology 34 3.3 Problem identification methodology 36 3.4 Company Profile 37 3.4.1 Company Organization 38

xi 3.5 3.4.2 Manufacturing of Connector Tools For Facility Layout Design 3.5.1 Definition Simulation 3.5.2 Uses of Simulation 3.5.3 When Should Simulation Be Used? 3.5.4 Advantage and Disadvantage of Simulation 40 42 42 43 43 44 CHAPTER 4 DATA ANALYSIS AND MODELLING 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 Model Conceptual Data Analysis Model Description Model Assumption Model Contraction Model Validation Number Of Replication Modification On The System Layout Modeling 4.9.1 Current Layout 4.9.2 Layout Design I 4.9.3 Layout Design II 4.9.4 Layout Design III Comparison Design Discussion 4.11.1 Average Output Performance 4.11.2 Percentage Improve 4.11.3 Average Profit Performance 4.11.4 One Way ANOVA Analysis Cost Estimation 4.12.1 Current Layout Cost 4.12.2 Alternative I Layout Cost 4.12.3 Alternative II Layout Cost 4.12.4 Alternative III Layout Cost 4.12.5 Summary of Cost Result Explanation 46 47 49 49 50 51 52 53 53 54 55 56 57 58 59 59 59 60 61 62 63 63 64 64 65 66

xii CHAPTER 5 CONCLUSION & RECOMENDATION 5.1 5.2 Conclusions Recommendations for future work 67 68 REFERENCES 69 APPENDICES A1 Letter for Company Visited 71 A2 University Confirmation Letter 73 B1 Gantt Chart FYP 1 74 B2 C D E F G H Gantt Chart FYP 2 Example of Sample Size Calculation Summary Of Cycle Time Data And Sample Size Chi Square Test Calculation (Machine Downtime) Chi Square Test Calculation (Machine Setup Time) Working Instruction Standard (W.I.S) Production Process 75 76 77 78 115 120 123

xiii LIST OF TABLE Table No. Page 2.1 Summary of Previous Research 30 4.1 Working Process 47 4.2 Summary of FX15-**S-0.5SH Model Cycle Time 48 4.3 Summary of Machine Setup and Downtime 48 4.4 Replication Table 52 4.5 Current layout replication 54 4.6 Design I Layout Replication 55 4.7 Design II Layout Replication 56 4.8 Design III Layout Replication 57 4.9 Comparison Design 58 4.10 Actual Output for FX15 Series Model 58 4.11 One-Way ANOVA Result Test for Line Production Performance 61 4.12 Hsu s Multiple Comparisons With The Best for FX15 Serias Line Performance 62 4.13 Existing Layout Cost 62 4.14 Modeling Layout Cost 63 4.15 Alternative I Layout Cost 63 4.16 Alternative II Layout Cost 64 4.17 Alternative III Layout Cost 64 4.18 Comparison of Cost for Each Alternative 65

xiv LIST OF FIGURE Figure No. Page 2.1 Process layout 12 2.2 Product layout 14 2.3 Fixed position layout 16 2.4 Cellular layout 18 2.5 Volume and product variety relation 19 2.6 Step in simulation 23 3.1 Summary of project methodology 35 3.2 Summary of problem identify flow 37 3.3 Company organization 39 3.4 Summary of connector manufacture process 41 3.5 Cross section of connector 42 4.1 Conceptual model of manufacturing process 46 4.2 Simulation of production line 49 4.3 Current layout design 54 4.4 Layout design I 55 4.5 Layout design II 56 4.6 Layout design III 57 4.7 Average output performance 59 4.8 Percentage improve 60 4.9 Average profit performance 60 4.10 Comparison of output and profit 66

xv LIST OF SYMBOL n S 2 S χ 2 Sample Size Variance Standard Deviation Mean Chi-Square

xvi LIST OF ABBREVIATIONS ANOVA JIT WIP WIS SME LBL ISO Analysis of Variance Just in Time Work in Process/Work in Progress Working Instruction Standard Small Medium Enterprise Line balance Loss International Standard Operation

xvii LIST OF EQUATIONS Equation 1.1 Equation 1.2 Equation 4.1 Equation 4.2 Equation 4.3 Equation 4.4