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handling/preparation system
ACKNOWLEDGMENTS
Above all, I praise the Almighty Father and Lord Jesus Christ who gave me His
enabling grace to successfully complete this project work within the given
time.
ABSTRACT
The collected data is analyzed; and excel, AutoCAD/CATIA & flow chart is used for illustration
of the layout & material handling/preparation system. And using error & trial method the
efficient material utilization is addressed & proposed. There are indicated deference results by
the two charts due to deference in evaluation &control techniques. It clearly indicate the total
production cycle time is decreased from 1500minuts(25hr) to 1188minute(19.8hr); and the total
distance moved is decreased from 933m to 52m because of evaluated/improved necessary non-
value-adding activities and/or reduced/eliminated unnecessary non-value-adding activities.
First the non-value-adding & the critical activities that are crucial (value adding) activities are
identified using flow chart techniques, & illustrating how these activities are linked/arranged
together, their layout are prepared for arranged critical activities. The second flow process chart
shows the critical activities that are value adding for higher productivity of MIE so that MIE can
continually evaluate/improve necessary non-value-adding activities and reduce/eliminate
unnecessary non-value-adding activities, having proper layout & material handling/ preparation
system for the critical/value-adding activities.
Having proper layout for raw material store & workshops, and efficient material preparation
system (specifically for syrup bottle /code 905) is developed & proposed for MIEs new product
development strategy which maximize material utilization, reduce production time and welding,
provide workers convenience/easy and safety working environment, as a result having balanced
work flow among work stations the maximum productivity of the production line will be
ensured.
TABLE OF CONTENT
CONTENTS
PAGE
UNIT 1........................................................................................... 1
1. INTRODUCTION........................................................................1
1.1. Background of the company and the study.....................................................1
1.2. Problem Statement....................................................................................................2
1.3. Objectives......................................................................................................................2
1.3.1. General objective.................................................................................... 2
1.3.2. Specific objective..................................................................................... 3
1.4. Significance of the study.........................................................................................3
1.5. Limitation of the study.............................................................................................3
1.6. Scope of the study.....................................................................................................3
1.7. Expected outcome.....................................................................................................3
1.8. Methodology of the study.......................................................................................4
1.8.1. Study area and period.............................................................................4
1.8.2. Study design............................................................................................ 4
1.8.3. Data Collection Techniques......................................................................4
UNIT 2........................................................................................... 5
UNIT 3......................................................................................... 24
APPENDIX.................................................................................... 48
UNIT 1
1. INTRODUCTION
Production Capacity: MIE is the biggest single trailer manufacturer. It designs and manufactures
vehicle bodies, trailer as well as high and low bed semi-trailers. MIE has a capacity of
manufacturing over 1500 trailers and semi-trailers per annum. It has a full capacity of
manufacturing and erecting hydro electric components such as penstocks, steel liners, gates and
reservoirs. It has also a unique rolling machine in East Africa that produces very large fuel
storage talks. The Mega Rolling Plant has a total annual design capacity of producing storage
tank of one million liters. The material preparation plant of MIE is equipped with modern
cutting, shearing, bending and rolling machines. The machines include the following among
others:
- One automatic band saw and all the pre-welding and pre-assembly activities are
carried out in this plant.
The company has made huge investment towards introduction of new technologies and
upgrading skills by training personnel both locally and abroad. MIE, backed up with skilled
manpower and modern machineries, is pioneer company in Ethiopia and East Africa in the
production of prefabricated petroleum storage tanks in its own plant.
MIE produces dry cargo and fuel semi-trailer trucks. It is the first local company to be occupied
in the manufacturing of penstock elements using and steel liners for hydropower stations of
trailers. Most workshop of the company has unclear layout and needy material handling system.
This is due to the layout type the shop use.
Currently, MIE is to start up production of new product for sugar manufacturing process. This
study will design layout& material handling/preparation system that makes work easier, quicker
and rapid, rewarding (satisfying), safer and protected, enjoyable and also exciting for employees
during manufacturing process of these products.
1.3. Objectives
UNIT 2
Product customization can greatly affect production flow. While consumers push for greater
customization, manufacturers realize the expense associated with customization. A clear
illustration of this selection of options occurs in the automobile industry. At the early inception of
the mass marketing of the automobile to the general public, Henry Ford stated that the consumer
could have it in any color they like, as long as it was black. This approach allowed for the
production of a relatively affordable and the first mass-produced automobile. Facilitating the
working area and safety of this area, they can enhance productivity of their company.
The most efficient product flows start at one end with accumulation of raw materials and
subassemblies and progress sequentially to the other end with the final stocking or shipment of
the product. The process tends to be forward moving with little or no backtracking. Backtracking
can be a sign of inefficiencies in the process, such as quality problems, that result in rework.
Moreover, confusion with respect to order sequencing and priorities may prevail at the work
center as products have varying degrees of completion. A legitimate reason for backtracking
would be the sharing of similar machinery during subsequent steps in the process as a result of
excess capacity.
We all know the phrase 'time is money' and to a great or lesser extent we have expertise in the
'money' part of this saying. We speculated on how we can earn more, save more, manage it
better, and get a better return on the money we invest and so on. Given that time is money, all we
really need to be is experts in time, to produce the productive product in our organizations.
Some simple work measurement (no stop watch / study board required) and some analysis and
you will come up with improvements in the ratios of input resources (essentially time and
money) and output (goods or services) in your work place. One of the ways to have productive
production system is by considering its layout and material handling system.
It is the smart selection of the location of the plants and machines in such a way that facilitate
un-interruption and quick movement of input materials through pre-determined cycle of
operations which is with maximum material management and handling & with minimum overall
cost of the entire process. Plant layout is placing the right equipment, coupled with the right
method, in the right place to permit the processing of product in the most effective manner
through the shortest possible distance and in the shortest possible time. Plant layout change
arises due to:
Structuring the evaluation process forces the identification of key factors. For instance, what is
wanted? How will it be achieved and how will it be recognized? For design options to qualify for
evaluation they must meet fundamental criteria. One way to establish validation criteria is to
prepare a list to which management can react. Submitting a preliminary list for consideration
saves management time. A process of criteria validation confirms project assumptions and avoids
wasted effort caused by unclear project definition. All options to qualify must:
Placement of one or more facility, each in optimum locations assigning the customers in best
possible manner, not only improve flow of material and service offered by the facility to
customers, but also uses the facility at an optimum manner, thereby reducing a need for
multiple duplicating or redundant facilities.
1. Type of production/industry
a. Synthetic process
b. Analytical process
c. Conditioning process
d. Extractive process
ESTIFANOS WORKU Page 12
Layout& material
handling/preparation system
2. Influence of Processes
One of the most important factors, which are considered, is the process through which the
material passes in the concern. Much care should be given to the materials handling problem,
position of storeroom and tool room.
3. Flexibility of layout
Flexibility in layout can be secured in following ways:
i. Keep enough unobstructed floor areas.
ii. Separate electric motors be allowed on individual machines
iii. Mobile machinery to be used, where possible.
iv. Equipment to be placed on rubber footing instead of being fixed permanently.
v. Portable conveyor units may be employed.
vi. Make use of portable Jigs and fixtures.
12. Nature of product i.e. heavy or light, large or small, liquid or solid. Product must be
considered Product design, product specification & quantity and variety of products.
13. Work station design
In the design of workstation layout generally following space requirements are taken into
consideration:
i. The rectangular space occupied by the length with of the machine or group of machines.
This should include the space needed for covers, wheels, shafts, levers, doors, pulleys,
handles etc.
ii. Floor space for the power source or say electric motor when placed on the floor or
within the working area.
iii. Floor space required by the workers to perform work.
iv. Clearance space for feeding the work on and off the machine.
v. Space for racks, conveyor or stations, bins etc, which either contain the work to be
processed or receive the work after it has been processed on the machine.
vi. Space for tool racks, work benches and auxiliary equipment etc. required by the
individual machine, if any
affect a layout are: Shape, size, weight and condition also affect the choice of the type of layout,
choice of the material handling equipment and the storage facilities.
indirect workers and supervisors. Some factors that may influence selection
of possible sites for a machine are the following:
In manufacturing, layout consists of arrangement of plant sites with lines, buildings, major
facilities, work areas, aisles, and other pertinent features such as department boundaries. Because
of its relative stability, facility layout probably is one of the most crucial elements affecting
efficiency.
Remark
1 Operation
2 Store
3 Inspection
i. Construct a matrix showing all departments on both the left and the top
of the matrix.
ii. Estimate the number of moves required by the material handlers to
support production in an average day or shift between the two
departments; e.g. 8 trips from department 103 to 104.
The higher the number, the closer the departments (blocks) should be located to reduce
traveling distance, time, and downtime, and also the material traffic avoids going through
unrelated areas. It can also save aisle space by providing wider aisles only for necessary
blocks.
102 9 - 12 3 4 7
103 0 7 - 8 1 0
104 0 2 1 - 12 2
105 0 0 1 9 - 10
106 1 0 0 2 8 -
Fig. travel chart (Trip frequency chart) constructed with inputs from departments represented
by functional blocks.
Importance of relationship
1
1. Conference room
I 2
1
I
2. President
O 1 U 3 ValueCloseness rating
5 AAbsolutely Necessary
U O Reason in codeEEspecially important
3. Sales department U O
2
U
I 5
U U
IImportant
4. Personnel 4 OOrdinary closeness
O O U U
5
O
5
O I U UUnimportant
5. Plant manager
A
5
O
5 E 4
O XNot desirable
4
4 5 O 5
A I
6. Plant engineering office 3
I 4 O O 4
4 5 44 CodeReason for closeness
O O
7. Production supervisor U 5 5
E 1Frequency of use
O5 6
8. Controller's office 2Degree of personal contact
I 3Use of common equipment
4
9. Purchasing department 4Share same space
5Use common records
6Information flow
Fig. Relationship chart establishes relative closeness of functions to help in preparing block layou
2. Relationship chart
A relationship chart is extremely effective in cases when the product or
traffic pattern cannot be easily established. The figure shows a relationship
chart made by the following steps:
1. List all departments of activity centers (blocks shown on left).
2. Using the rating code, assign value in the top half of the blocks
intersecting two departments.
3. Assign an appropriate code from the reason in the bottom half of the
block.
Usually, each department can help assign frequency and closeness values.
Inconsistencies arise when two departments rate their relationship with
each other differently. One way to resolve this is to have one person
knowledgeable about both functions provide the rating for each pair of
- intermittent
- Expensive to implement
- Studied and evaluated extensively
- Long-term commitments
Classification of layout depends on the following criterias
Value: -worth and significance
Volume: -amount capacity and dimension of the product
Variety: -diversity or different type of the product
The objective of layout is to develop an economical layout which will meet the requirements of:
- product design and volume
- Process equipment and capacity
- quality of work life
- building and site constraints
A good layout requires:
an understanding of capacity & space requirements
selection of appropriate material handling equipment
decisions regarding environment and aesthetics
identification and understanding of the requirements for information flow
identification of the cost of moving between the various work areas
There are many types of layouts but before classifying the layout there are things to be
considered like:
the diverse activities
raw materials arrive at a shipping dock
processing throughout machines
finished products position through the shipping territory
space for:
- employee rest
- finishing goods
- Dressing room
A layout is considered to be tough if it performs well under all production scenarios. This
layout may not be optimal under any specific scenario, but it is also not too far off from the
optimal under all possible scenarios. Consider uncertainties explicitly in determining plant
layout. They formulate a stochastic dynamic layout problem under the assumption that the
following are known a priority:
(i) Material flows between departments for each of several pre-specified planning periods
(ii) The probability of transitioning from one flow matrix to another. The model is solved via
dynamic 6 programming for small sized problems and using heuristics for larger ones.
Although this method considers additional factors such as additional buffer space and
layout changeover costs, it is computationally intractable in the multiple period cases.
Process layout is a type of layout in which all the plants associated with a particular type of
process are grouped together, is typical in job shop and batch production. Job shop production is
characterized by manufacturing of one or few quantity of products. The distinguishing feature of
this is low volume and high variety of products. This type of layout and associated flow pattern
results in the most number of moves, the highest setup times, and the longest moves for each
manufactured product. It is:
Used when the operations system must handle a wide variety of products in relatively
small volumes (i.e. flexibility is necessary)
Designed to facilitate processing items or providing services that present a variety of
processing requirements.
The layouts include departments or other functional groupings in which similar kinds of
activities are performed.
A manufacturing example of a process layout is the machine shop, which has separate
departments for milling, grinding, drilling, and so on.
Used for products that has long product lead time.
B. Product layout:
Product layout is also called assembly line or flow shop layout.
- Product layouts are used to achieve a smooth and rapid flow of large volumes of products
or customers through a system.
- A job is divided into a series of standardized tasks, permitting specialization of both labor
and equipment.
- Product layouts achieve a high degree of labor and equipment utilization.
Cellular layout is a type of layout in which machines are grouped into what is referred to as a
cell. Groupings are determined by the operations needed to perform work for a set of similar
items, or part families that require similar processing. These relate to the grouping of equipment
and include faster processing time, less material handling, less work-in-process inventory, and
reduced setup time. Cellular layout is used when the operations system must handle a moderate
variety of products in moderate volumes. The large volumes handled by these systems usually
make it economical to invest huge amount of money in equipment and job design.
Fixed-position layouts are widely used for farming, firefighting, road building, home building,
remodeling and repair, and drilling for oil.
S.N Chrematistic
Product Layout Process Layout
o s
1 Nature A Sequence of facilities as per All similar facilities are grouped
processing re requirement of products together
2 Application High volume, few products High volume and high Varity
3 Product Standardized, stable rate of out put Diversified or Varity of products
using common operation
4 Work flow Straight line, same sequence of Variable flow for each product
operations for all product type
5 Material Flow predictable and systematic can Cannot be automated as flow
Handling be automated easily depends up on the product type
6 Inventory High turnover of raw materials and Low turnover of both raw material
WIP inventory and WIP
7 Break downs Brake down in any one machine stops Can tolerate breakdowns
production line
8 Production Simple Complex
center
9 Flexibility Low High
10 Space Efficient Low
utilization
11 Product cost High fixed cost, Low variable cost Low fixed cost, High variable cost
The study of MH is a systematic approach to using knowledge and resources, which include
labor, materials, capital, and innovative techniques. The MH function was once a separate entity
in the manufacturing organization and was considered to be an "improve as you progress"
concept. It is now taking its rightful place in concurrent engineering as an essential part of
facility design.
Material Handling refers to the moving of materials from the store room to the machine and
from one machine to the next during the process of manufacture. It is also defined as the art
and science of moving, packing and storing of products in any form. Material handling devices
increases the output, improves quality, speeds up the deliveries and decreases the cost of
production. Hence, material handling is a prime consideration in the designing new plant and
several existing plants.
Materials handling can be also defined as the function dealing with the preparation, placing and
positioning of materials to facilitate their movement or storage. Material handling is the art and
science involving the movement, handling and storage of materials during different stages of
manufacturing. (S.ANIL KUMAR /N.SURESH, 2006)
Material handling represents an area where major waste, loss of resources, and loss of
productivity can occur and where management can effect major improvements in both
productivity and profitability by reducing or eliminating accident-causing hazards. (Industrial
engineering handbook)
The requirement in the field of material handling is understandings by the user, save whether a
firm or distributor understands the material handling decision available and the basic principles
of material handling. Main elements of material handling are: Space, motion, quantity and time.
Whether the material is moved manually or with the assistance of mechanized equipment,
material handling can result in injuries, property damage, or loss of product. The mishandling of
materials is considered the single largest cause of accidents and injuries in the workplace.
Materials handling is estimated to account (at least in part) for 20 to 45 percent of all
occupational accidents .The best method for increasing the safety in materials handling is to
reduce or eliminate it altogether.
In other words, the less materials must be handled, the safer and more efficient the operation. In
the initial design or redesign of facilities, the objective is to eliminate unnecessary manual or
mechanical handling of materials. Ideally, this is done when the facility layout and equipment are
designed. For example, designs should place receiving areas for raw materials as close as
possible to the machinery that will use those materials. When the handling of materials cannot be
eliminated altogether, an alternative is to use mechanical equipment in place of manual handling.
Moving by Hand:
Sometimes, manual handling and lifting of materials is necessary, and ergonomic principles must
be employed to ensure that the manual handling is performed as safely as possible. The
consideration of ergonomics in the design of manual material-handling tasks can result in
reduced physical stress and lower injury costs. The weight of the load and the bending, twisting,
and turning of the body are often associated with injury during manual material handling.
Injuries include:
1) Musculoskeletal strains and sprains from lifting or moving loads that are too heavy or too
large,
2) Fractures and bruises caused by dropped or moving material or getting caught in pinch
points, and
3) Cuts and damages caused by displacement of improperly stored material or incorrect cutting
of ties or other securing devices.
The following general guidelines minimize the musculoskeletal hazards associated with manual
material handling:
- Keep the load close to the body.
- Use the most comfortable posture.
- Do not twist while lifting or lowering the load.
- Lift slowly and evenly (dont jerk the load).
- Securely grip the load.
ESTIFANOS WORKU Page 26
Layout& material
handling/preparation system
UNIT 3
Currently MIE is searching for new Layout of tanker manufacturing for sugar production. To
achieve its company mission/goal and to improve its productivity continuously it should follows
steps that provide a strategy for eliminating non-value-adding costs/ activities. These will
include:
1. Identify Activities.
2. Identify Non-Value-Adding Activities.
3. Understand Activity Linkages, Root Causes, and Triggers.
4. Establish Performance Measures.
5. Report Non-Value-Adding Costs.
The following flow process chart (the first chart/click on sheet1) shows both the critical &none
critical activities that are crucial (value adding) &cost (none value adding) to MIE. The emphasis
is on the activities themselves, by which the overall work is accomplished in the organization.
This is the identification and description of the activities conducted in the enterprise. Through
these activities analysis it can identifies the root causes of activities, the events that trigger
activities, and the linkages among activities.
The following flow process chart (the second chart, click on sheet2) shows the critical activities
that are crucial (value adding) for higher productivity of MIE. These shows how continually
evaluate/improve Necessary non-value-adding activities and Reduce/eliminate Unnecessary non-
value-adding activities. Then the layout for the critical activities will be designed. There are
indicated deference shows by the two charts due to deference in evaluation &control techniques:
Chart 1 Chart 2
All dimensions in
Good layout process involves the minimization of transportation cost, distance, or time. An
efficient layout can reduce unnecessary material handling, help to keep costs low, and maintain
product flow through the facility. While optimizing this process there are things to be considered
like:
- Cost: moving, installation, maintenance and commission
- Benefit: expressing the reward for the company by designing the layout and
material handling/preparation considering: Time, Distance & Cost of material
handling, Labor etc.
To minimize the distance and the time used to bring materials from store to material preparation
shop, consider the following:
- Relationship of the shop with other shops
- Distance of inclination of the floor
- Availability of space for the materials to be placed
- Objective of the new door to be opened
- Electrical system of the machines
ESTIFANOS WORKU Page 40
Layout& material
handling/preparation system
Then by trial and error method the area of the raw material that best
much (with lower waste left) the area of the object is determined from
the available raw material
Asc =3.14*2.2*2.5+3.14(2.2/2)2+3.14(2.2/2)2
Therefore from the available raw materials (L x W) the 6 x 2.5 raw material is
the best match.
6.9
from
this:
UNIT 4
4.1 CONCLUSION
In the result section, the study displays the availability situation of the selected material
according to the scope of the check. The designed layout will minimize transportation cost,
distance to be moved, or time. It is efficient layout to reduce unnecessary material handling, keep
costs low, and maintain smooth product flow through the facility. While optimizing this process
there are things considered:
4.2 RECOMMENDATION
MIE is strongly recommended to use the techniques that are addressed by
this study before starting the manufacturing process of the new product
developed. The proper/ efficient designed layout and material
handling/preparation exactly shows how it can overcome the cost of non-
value adding activities.
The flow process charts shows all stages of non-value adding activities in
order to manage them throughout its product production life cycle.
MIE should have the control & management system starting with proper
layout & material handling, then during material preparation and fabrication
system. Additionally, it is too crucial to MIE to refer the unit 2 & 3 of this
study.