Term project: Solution for delayded delivery of Eyeglass lens manufacturing

Term Project:

SOLUTION for DELAYED DELIVERY OF EYEGLASS LENS MANUFACTURING

Subject: Modern Production Logistic

Students:

LE NGOC BAN (Mr) NGUYEN THI MY HIEP (Ms)

Instructor: Prof.Voratas Kachitvichyanukul

Subject: Modern Production Logistic

Term project: Solution for delayded delivery of Eyeglass lens manufacturing

TABLE OF CONTENTS

I. II. III. 1. 2. 3.

Statement of the problem. ........................................................................................... 3 Objective of project ..................................................................................................... 3 Methodology. ............................................................................................................ 3 Root cause analysis ................................................................................................ 3 Eyeglass lens manufacturing diagram and process data: ....................................... 4 Methodology. ......................................................................................................... 5 a) b) Sale forecast for the year of 2011. ...................................................................... 5 Methodology. ...................................................................................................... 8

IV. V. 1. 2.

Analysis of result ..................................................................................................... 12 Conclusion and Recommendation: ........................................................................... 13 Conclusion: .......................................................................................................... 13 Recommendations: ............................................................................................... 14

Subject: Modern Production Logistic

Term project: Solution for delayded delivery of Eyeglass lens manufacturing

I.

Statement of the problem.

Eyeglass lens manufacturing company is in a state of delayed delivery, we are hired as a consultant group to determine the root cause of the problem and to find a remedy to improve this situation. Base on the historical sale report and by using a fishborn diagram, we found the root cause and proposed a best solution to help the factory deal with their problem. II. Objective of project

The first priority is to determine the root cause that made the company fall in delayded delivery situation, after the cause was found, combining with the historical report, we give them the best solution and more than that we provide insight to operate the plant with maximizing throughput. III. Methodology. 1. Root cause analysis Base on the information that was given from the plant and by using the fishborn diagram method, we conclude that the problem of delayded delivery is due to poor production planning.

Poor logistic

Mis- scheduling
Delayded delivery

Poor forecast Product shortage Poor production plan

Subject: Modern Production Logistic

Term project: Solution for delayded delivery of Eyeglass lens manufacturing

2. Eyeglass lens manufacturing diagram and process data: Process diagram:

Process data:
Step Mould Preparation Clean Moulds Dry Moulds Assemble Moulds -Gasket (more expensive) -Tape (Cheaper) Install Clamp Fill with Polymer Bake Cool down Disassemble Clean and Inspect Annealing Measure & Pack Time 3.0 minutes/Rack 3.4 minutes/Rack 1.3 minutes/Rack 1.3 minutes/Rack 4.8 minutes/Rack 30 seconds/Rack 40 seconds/Rack 20 hours/Rack 4 minutes/Rack 2.2 minutes/Rack 4.0 minutes/Rack 3 Hours/Rack 8 minutes/Rack 23.5 hours/Rack Lense (Pairs/Hour) 240 212 554 554 150 1440 1080 160 180 327 180 266 90 90

Subject: Modern Production Logistic

Term project: Solution for delayded delivery of Eyeglass lens manufacturing

There are some technical information from subject given: There are a total of 6 ovens. The capacity of the oven is 600 pairs and the policy is to fill the oven to capacity before starting. The lens are removed from the oven and cooled rack by rack. The oven is occupied when the first rack is loaded but the bake process cannot start until the oven is filled. The oven is freed when all racks of lenses are removed. The annealing oven has unlimited capacity. It is preferable to assemble moulds by using gasket. Tape is used only when there is no gasket available to be used. 3. Methodology. From the data record of the monthly sales for the past three years, we forecast demand of product for the next year and our target is to meet this demand by providing the best production planning. a) Sale forecast for the year of 2011. Past sales record:
2008 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 24596 19712 21692 20042 21516 22396 33638 30008 25520 17688 21010 21890 279708 Pairs of Lenses 2009 27082 21714 19624 22044 23738 24662 37026 33066 30116 19492 23100 24090 305754 2010 29788 23914 23804 24310 26180 20372 40788 36300 29931 18123 25388 26422 325320

Subject: Modern Production Logistic

Term project: Solution for delayded delivery of Eyeglass lens manufacturing

Sesonal index table : Pairs of Lenses 2008 24596 19712 21692 20042 21516 22396 33638 30008 25520 17688 21010 21890 279708 23309 2009 27082 21714 19624 22044 23738 24662 37026 33066 30116 19492 23100 24090 305754 25480 2010 29788 23914 23804 24310 26180 20372 40788 36300 29931 18123 25388 26422 325320 27110 Monthly average 27155 21780 21707 22132 23811 22477 37151 33125 28522 18434 23166 24134 25300 Seasonal index 1.073 0.861 0.858 0.875 0.941 0.888 1.468 1.309 1.127 0.729 0.916 0.954

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Yearly Average

Applying the Winters forecast method with Alpha: 0.7; Beta: 0.53 and Gamma: 0.2, we forecast Ft (total demand of 2011) approximately equal to 374525 pair of lens. With the alpha, Beta and Gamma above, we got TS = 0.09 is the minimum value. In theory, TS ranging from positive 1 to minus 1, TS here is very small compared with 1, so this result is acceptable. The monthly demand forecast of 2011

Subject: Modern Production Logistic

Term project: Solution for delayded delivery of Eyeglass lens manufacturing

Monthly Demand 2011

50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 1 2 3 4 5 6 7 8 9 10 11 12 30560 24713 24864 26117 28552 27230 46410 41905 36673 30880 23999 32622

Monthly Demand

Monthly average: 31210.

Demand forecast year of 2011 compare with last 3 years

180000 160000 140000 120000 100000 80000 60000 40000 20000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 2011 Year 2010 Year 2009 Year 2008

Subject: Modern Production Logistic

Term project: Solution for delayded delivery of Eyeglass lens manufacturing

Year 2008: Year 2009: 305754 279708

Year 2010: 325320

Year 2011: 374525

b) Methodology. In detail, well solve the problem as following steps: Forecasting the next year demand 2011 from the record data of the monthly sales for the past three years 2008, 2009, 2010 that we already have done above. Calculating the amount of lens needs to be produced a day to meet the demand. Planning of production in detail for each stage, every hour, every day, month and year to ensure optimal production. Nghec ng m Re-check the production plan that satisfies: Delivering goods on time, adequate output to the customer. Reduce inventory in the stock. The working schedules are reasonable, optimal. Not only planning production to meet market demand, distribution goods on time in 2011, but also need to advise the ability to maximize the plant throughput in the future. Year 2011 forecast demand is 374 525 pairs per year equal to 1440 pairs per day with suppose that the plant runs 5 days per week and 52 weeks per year. Based on data forecast for year 2011, average amount needs to be produced is 1440 pairs of lens per Subject: Modern Production Logistic

Term project: Solution for delayded delivery of Eyeglass lens manufacturing

day. With the global bottleneck capacity of production line of Measure & Packing is 90 pairs of lens per hour, if we work 8 hours per day the amount will be 720 (90 multiply by 8) pairs of lens per day. This amount is a haft of demand requirement which is less than the requirement so we should arrange the production plan in order to ensure demand per day, that means well supply the finished goods on time. Because of capacity of each stage is fixed so we choose to increase the number of working hours for Measure & Packing up to double of 16 hours per day. With the production planning for Measure & Packing stage of 90*16 = 1440 pairs of lens per day, other stages are always satisfy this capcity. Exactly, from the production line, we divide the line into two loops: first loop from beginning to Baking; and second loop after Baking to the end. From the global bottleneck capacity of 90 pairs of lens of second loop, firstly we calculate production planning for the 2nd loop . We have production planning of 2nd loop to get 1440 pairs of lens/day as below:
Time Time in order 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Total Input From loop 1 1440 1260 1080 900 720 540 360 180 0 Cool Down 180 180 180 180 180 180 180 180 180 Disass embly 327 180 180 180 180 180 180 180 180 Loop 2 (after baking) Clean & Inspection 180 180 180 180 180 180 180 180 180 720 180 360 540 720 180 360 540 720 Preapare for annealing Anneal 266 Measure & Package 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 1440 90 180 270 360 450 540 630 720 810 900 990 1080 1170 1260 1350 1440 1440 End Products

720

720

1440

1440

1440

1440

Subject: Modern Production Logistic

Term project: Solution for delayded delivery of Eyeglass lens manufacturing

10

From the table above, we see the stages of Cool Down, Disassemly, Clean & Inspection, Annealing will run 8 hours per day, but Measure & Packing will run 16 hours per day, and well get 1440 pairs per day to suply on time. Now we consider production planning of 1st loop: We have the bottleneck rate of 1st loop is rb = 212 pairs per hours of Cleaning stage, if we work 8 hours per day so the production amount of 1 st loop will be 212 x8 = 1696 pairs per day. This value is higher than the nescessary input of 2 nd loop (1440 pairs per day) so we should control how many pairs should be produced per day, may be two Ovens run to get 600 pairs x 2=1200 pairs per day or may be three Ovens run to get 600 pairs x 3 = 1800 pairs per day, we calculate to optimize the number of Ovens need to be run per day in a week as below:
1 st Loop Time of working/day (h) Monday Tuesday Wednesday Thursday Friday Monday 8 8 6.15 5.66 6.15 Production 1696 1696 1304 1200 1304 Inventory (+/- ) + 104 - 496 +496 0 -104 WIP 1800 1200 1800 1200 1200 Bake Number of Ovens 3 2 3 2 2 360 120 480 240 0 2 rd Loop Inventory (+/- ) Input to loop 2 1440 1440 1440 1440 1440 1440

From the table above, we see: On Monday, we run full time of 8 hours per day to produce 1696 pairs, add 104 pairs produced excess from last Friday to have total of 1800 pairs, so we run 03 Ovens on Monday. On Tuesday, we run full time of 8 hours per day to produce 1696 pairs, but set to bake only 1200 pairs to agree with capacity of loop 2 on next day; 496 pairs left will be added in production amount of Wednesday. On Wednesday, we run 6,15 hours is enough, the correlative amount produced is 1304 pairs per day, add 496 pairs produced excess from last Tuesday to have total of 1800 pairs, so we run 03 Ovens on Wednesday. Subject: Modern Production Logistic

Term project: Solution for delayded delivery of Eyeglass lens manufacturing

11

On Thursday, we run 5,66 hours, correlative amount produced is 1200 pairs per day and we run two Ovens on Thursday. On Friday, we run 6,15 hours , the correlative amount produced is 1304 pairs per day, but set to bake only 1200 pairs to agree with capacity of loop 2 on next day; 104 pairs left will be added in production amount of next Monday. And now you know why we can run 03 ovens from 104 pairs extra from Friday. For detail, we make the production time scheduling for the first loop as below:
Time in order 0 1 2 2,83 3 4 Capacity Preparation pairs/h 8AM 9AM 10AM 10h50' 10h60' 12AM 13PM 5 5,66 6 6,15 7 8 29' 14PM 14h39' 14h60' 15h9' 15h60' 17PM 29' 0 212 212 176 36 212 Lunch break 212 140 72 32 180 212 104 Clean 212 0 212 212 176 36 212 Dry 554 0 212 212 176 36 212 Assemble 554 0 212 212 176 36 212 Insta ll 1440 0 212 212 176 36 212 Fill Polyme 1080 0 212 212 176 36 212 0 212 424 600 36 248 600 212 140 72 32 180 213 104 212 140 72 32 180 214 104 212 140 72 32 180 215 104 212 140 72 32 180 216 104 212 140 72 32 180 217 104 460 600 72 104 284 496 600 600 600 Cumu lative Bake

According to above production time scheduling, we see: Monday and Tuesday, we have to work 8hours per day that we product 1696 pairs per day. Wednesday and Friday, we have to work 6,15 hours per day, so we stop working at stages at 15h9PM to get 1304 pairs per day before Baking.

Subject: Modern Production Logistic

Term project: Solution for delayded delivery of Eyeglass lens manufacturing

12

Thusday, we have to work 5,66 hours per day, so we stop working at stages at 14h39PM, to get 1200 pairs per day, before Baking. We can devide production calendar as below:

1st loop Day in week Mould Preparatio to Fill Polyme 8:00 - 17:00

Bake Cool down to Cleanning & Inspec 12:00-8:00 15:00-11:00 17:00-13:00 12:00-8:00 15:00-11:00 12:00-8:00 15:00-11:00 17:00-13:00 12:00-8:00 15:00-11:00 8:00 - 17:00

2nd loop Annealling Measure & Packing 8:00-17:00 20:00-5:00

Monday

8:00-11:00 13:00 -16:00

Tuesday

8:00 - 17:00

8:00 - 17:00

8:00-11:00 13:00 -16:00

8:00-17:00 20:00-5:00

Wednesday

8:00 - 15:09

8:00 - 17:00

8:00-11:00 13:00 -16:00

8:00-17:00 20:00-5:00

Thursday

8:00 - 14:39

8:00 - 17:00

8:00-11:00 13:00 -16:00

8:00-17:00 20:00-5:00

Friday

8:00 - 15:09

12:00-8:00 15:00-11:00 12:00-8:00 15:00-11:00 17:00-13:00

8:00 - 17:00

8:00-11:00 13:00 -16:00

8:00-17:00 20:00-5:00

Monday

8:00 - 17:00

8:00 - 17:00

8:00-11:00 13:00 -16:00

8:00-17:00 20:00-5:00

IV.

Analysis of result

According to the scheduled working calendar above, the plant can produce 374400 pairs of lens per year. Meanwhile, annual demand forecast 2011 around : 374525 pairs of lens per year, the deviation between quantity of production and demand is negligible, so this production capacity is acceptable.

Subject: Modern Production Logistic

Term project: Solution for delayded delivery of Eyeglass lens manufacturing

13

Meet demand of the year 2011 with: 1st loop: working from 8 am to 5 pm everyday to run 2 or 3 oven/day 2nd loop: working from 8 am to 5 pm everyday, except Mrs&Pack works 16hours per day. Bake: running 20 hours Only Measure&Pack process needs 2 working shifts. 1st loop has no need to be operated all entire 2011. Only 3 out of 6 ovens needed at Bake at 80C process

Production plan scheduled Delayed delivery solved, customer service is satisfied The problem of delayded delivery was solved. But, be aware of critical monthly demand during the year of 2011, from the monthly forecast diagram the highest demand period is from July to September. To offset this peak, the plant have to make to stock from January to June. Solution for maximizing the plant throughput: Cycle WIP = 7200 pairs per week. Cycle time = 123 hours From the Littles law Throughput = , we get:

Throughputactual = 7200/123 = 58.53 pairs per hour. Throughputbest case = rb = 90 pairs per hour. ThroughputPWC =
+ 1

= 69.57 pairs/h, where Wo = rb * To = 90*23.5 = 2115

Throughputactual < ThroughputPWC, So still room for improvement. V. Conclustion and Recommandation: 1. Conclustion: Subject: Modern Production Logistic

Term project: Solution for delayded delivery of Eyeglass lens manufacturing

14

The problem of delayded delivery was solved with the strict timely working calendar required Steady-state assumed Unable to improve the bottleneck speed Unlimited mould supply Unlimited gasket supply 12:00 13:00 is a lunch break Throughput can be improved for greater demand of the next years. 2. Recommendations: Logistics system should be checked. Forecast system should be checked. Capacity of Measure&Pack process should be improved. Hidden capacity in many processes can be yielded in the future.

The end!

Subject: Modern Production Logistic