Implementation Of Value Stream Mapping (VSM) In Textile Manufacturing Company.

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UNIVERSITI TEKNIKAL MALAYSIA MELAKA

This report submitted in accordance with requirement of the Universiti Teknikal Malaysia Melaka (UTeM) for the Bachelor Degree of Manufacturing Engineering

(Manufacturing Management Hons.)

by

NURHAZIMAH BINTI MOHD HAMKA B051210172

910227-01-6422

FACULTY OF MANUFACTURING ENGINEERING 2015

IMPLEMENTATION OF VALUE STREAM MAPPING (VSM) IN

TEXTILE MANUFACTURING COMPANY


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UNIVERSITI TEKNIKAL MALAYSIA MELAKA

BORANG PENGESAHAN STATUS LAPORAN PROJEK SARJANA MUDA

TAJUK: IMPLEMENTATION OFVALUE STREAM MAPPING IN TEXTILE MANUFACTURING COMPANY

SESI PENGAJIAN: 2014/2015 Semester 2

Saya NURHAZIMAH BINTI MOHD HAMKA

mengaku membenarkan Laporan PSM ini disimpan di Perpustakaan Universiti Teknikal Malaysia Melaka (UTeM) dengan syarat-syarat kegunaan seperti berikut: 1. Laporan PSM adalah hak milik Universiti Teknikal Malaysia Melaka dan penulis. 2. Perpustakaan Universiti Teknikal Malaysia Melaka dibenarkan membuat salinan

untuk tujuan pengajian sahaja dengan izin penulis.

3. Perpustakaan dibenarkan membuat salinan laporan PSM ini sebagai bahan pertukaran antara institusi pengajian tinggi.

4. **Sila tandakan ( )

SULIT TERHAD

TIDAK TERHAD

(Mengandungi maklumat yang berdarjah keselamatan atau kepentingan Malaysia sebagaimana yang termaktub dalam AKTA RAHSIA RASMI 1972)

(Mengandungi maklumat TERHAD yang telah ditentukan oleh organisasi/badan di mana penyelidikan dijalankan)

Alamat Tetap:

RUMAH KAKITANGAN KULIM (MALAYSIA) BERHAD,

ULU TIRAM ESTATE,

81800 ULU TIRAM, JOHOR.

Tarikh: ________________________

Disahkan oleh:

Cop Rasmi:

Tarikh: _______________________ ** Jika Laporan PSM ini SULIT atau TERHAD, sila lampirkan surat daripada pihak berkuasa/organisasi berkenaan dengan menyatakan sekali sebab dan tempoh laporan PSM ini perlu dikelaskan sebagai SULIT atau TERHAD.


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DECLARATION

I declare that this thesis entitled “Implementation of Value Stream Mapping (VSM) in The Textile Manufacturing Company” is the result of my own research except as cited in the reference. This thesis has not been accepted for any degree and is not concurrently submitted in candidate of any other degree.

Signature: ……….…..…. Name: ……….. Date: ………


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APPROVAL

I hereby declare that I have read this dissertation/ report and in my opinion this dissertation/ report is sufficient in term of scope and quality as a partial fulfillment of Bachelor of Manufacturing Engineering (Manufacturing Management).

Signature: ……….…..………. Supervisor Name: ……….. Date: ……….


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DEDICATION

Special thanks for my beloved father and mother, Encik Hamka Bin Haji Ahmad and Puan Siti Tumiah Binti Tupani and my siblings because of the support for me to do my best in this final year degree project. The motivation and encouragement had inspired me to conduct this research in the best way. Special thanks to Dr Effendi Bin Mohamad as the supervisor for my final year degree project who is always give the knowledge and guiding me to complete this research in the best way.


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ABSTRACT

Nowadays, manufacturing industries have becoming more competitive and strive to increase their efficiency. This study was carried out in a textile manufacturing company that has a problem of lead time in their production due to non-value added activities. A lean manufacturing tool for example like Value Stream Mapping (VSM) was proposed in the textile manufacturing company starting from developing a current state map (CSM) followed by analysing CSM to detect waste and ultimately developing future state map (FSM). Focusing on production of yellow brass safety pin, data were analyse using Ishikawa Diagram, Yamazumi Chart and Spaghetti Diagram after being collected using time studies. From the FSM, it is noted that non-value added where reduced from 15 days to 11 days while non-value added was reduced for 158107.8 second to 15120.8 second. Future works include implementation of the proposed VSM to know its feasibility and efficiency in reducing waste.


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ABSTRAK

Pada masa kini, industri pembuatan telah menjadi lebih kompetitif dan berusaha untuk meningkatkan kecekapan mereka. Kajian telah dijalankan di syarikat pembuatan tekstil yang mempunyai satu masalah dari segi masa tunggu dalam pengeluaran mereka disebabkan aktiviti yang tiada nilai (non-value added). Di dalam konsep pembuatan kejat seperti Value Stream Mapping (VSM ) telah dicadangkan dan diaplikasi pada syarikat pembuatan tekstil dan apat melakar Current State Map (CSM) telah dilakarkan serta diikuti dengan menganalisis CSM bagi mengesan sisa (waste) dan akhirnya lakaran untuk Future State Map (FSM) dibuat. Fokus kajian ini adalah terhadap pengeluaran peniti loyang, data menganalisis menggunakan Ishikawa Diagram, Yamazumi Chart and Spaghetti Diagram selepas dikumpul menggunakan kajian masa. Dari FSM, dapat dilihat bahawa bukan nilai tambahan (non-value added) berjaya dikurangkan dari 15 hari kepada 11 hari dan putaran masa pada salah satu proses berjaya dikurangkan untuk 158107.8 saat kepada 15120.8 saat. Pelbagai applikasi pada masa akan datang akan dilaksanakan untuk membuktikan bahawa kebolehsanaan VSM dalam kecekapannya dalam mengurangkan sisa.


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ACKNOWLEDGEMENTS

First and foremost, I would like to take this opportunity for special thanks to Dr Effendi Bin Mohamad as supervisor for final degree year project for guide and encourage me to conduct this research in this company. I would like to special thanks for Mr Prakash Selvaraj as Production Manager, Mr Nik Aniza as engineer and all staff for their support and cooperation in help me to conduct the research at textile manufacturing company. Besides, I would like to thanks and appreciate to all lecturer of Faculty in Manufacturing Engineering those involve in my final year degree project and who were involved to cooperate with me until complete this research successfully.


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DECLARATION APPROVAL DEDICATION

`ABSTRACT i

ABSTRAK ii

ACKNOWLEDGEMENTS iii TABLE OF CONTENT iv

LIST OF TABLE vii

LIST OF FIGURE ix

LIST OF ABBREVIATION xiii

CHAPTER 1 ... 1

INTRODUCTION ... 1

1.1 Background of study ... 1

1.2 Problem Statement ... 2

1.3 Objective ... 4

1.4 Scope ... 4

1.5 Structure of the Report ... 6

CHAPTER 2 ... 7

LITERATURE REVIEW ... 7

2.1 Manufacturing Industrial Overview ... 7

2.2 Lean Manufacturing (LM) ... 9

2.3 LM Principle ... 11

2.3.1 Identify Value ... 12

2.3.2 Value Stream Map (VSM) ... 12

2.3.4 Pull ... 12

2.3.5 Perfection ... 13

2.4 Production Waste ... 13

2.4.1 The seven wastes ... 13


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2.5.1 5’S ... 18

2.5.2 Kaizen ... 19

2.5.3 Kanban ... 19

2.5.4 Cellular Manufacturing ... 20

2.5.5 Value Stream Mapping (VSM) ... 20

CHAPTER 3 ... 23

RESEARCH METHODOLOGY ... 23

3.1 Project Overview ... 23

3.2 Product Flow Identification and Analysis... 26

3.3 Development of Current State Mapping (CSM) ... 28

3.3.1 Semi-structure Interview and Focus Group Discussion ... 28

3.3.2 Natural and Indirect Observation... 29

3.3.3 Brainstorming ... 29

3.3.4 Time Study ... 30

3.3.5 Flow in Developing the Current State Map (CSM) ... 33

3.3.6 Determination of Waste and Analysing Problem Area ... 38

3.3.7 Spaghetti Diagram ... 38

3.3.6 Takt Time ... 40

3.3.7 Yamazumi Chart ... 40

3.3.8 Ishikawa Diagram ... 41

3.4 Development of Future State Map (FSM) ... 42

3.6 Final Year Project (Part 1) Gantt Chart ... 43

3.7 Final Year Project (Part 2) Gantt Chart ... 44

CHAPTER 4 ... 45

RESULT AND DISCUSSION ... 45

4.1 Product Flow Identification and Analysis... 45

4.1.1 Pointing Process ... 47

4.1.2 Assemble process ... 50

4.1.3 Finishing Process (Passivation) ... 54

4.1.4 Quality Control Inspection ... 58

4.1.5 Packaging ... 59

4.1.6 Staging Area ... 62

4.1.7 Checking ... 62


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4.2 Current State Map (CSM) ... 66

4.3 Analysis of CSM ... 68

4.3.1 Takt Time ... 69

4.3.2 Root Cause analysis ... 72

4.4 Identify and Analysis the Problem ... 77

4.4.1 Pointing Process ... 77

4.4.2 Assemble Process ... 78

4.4.3 Passivation Process ... 79

4.4.4 Quality Control Inspection ... 80

4.4.5 Packaging ... 81

4.4.6 Staging area ... 82

4.4.7 Checking ... 83

4.4.8 Palletizing ... 84

4.5 Proposed Improvement for the FSM ... 85

4.5.1 Improvement in Order System and Inventory ... 85

4.5.2 Improvement for Critical Workstation... 85

4.6 Development of FSM ... 98

4.6.1 Future State Map (FSM) ... 102

CHAPTER 5 ... 104

CONCLUSION AND RECOMMENDATION ... 104

5.1 Conclusion ... 104

5.2 Recommendation ... 105

REFERENCES ... 107


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LIST OF TABLE

TABLE TITLE PAGE

2.1 Case Study for Application for Value Stream Mapping in Industry 22

3.1 Cycle time recording sheet 31

4.1 Cycle Time for Machine in One Shift for Two Pointing Machine 49 4.2 Amount of Total Output with the Scrap in one shift 49

4.3 Data for Time Study for Pointing Process 49

4.4 Cycle time for machine in in one shift for three assemble safety pin

machine 52

4.5 Amount of Total Output with the Scrap in one shift 52

4.6 Time study for passivation process 57

4.7 The cycle time for quality control inspection 58

4.8 Cycle time for packing process 61

4.9 Cycle time for checking process 62

4.10 Cycle time for palletizing and shipping 63

4.11 Average Data Collection 64

4.12 Requirement Data 65


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4.14 Improvement and saving for pointing machine 87

4.15 Suggestion Step to Implement 5’S 91

4.16 Table For Planning Production 93


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LIST OF FIGURE

FIGURE TITLE PAGE

1.1 Unsystematic arrangement of workplace 3

1,2 Product waiting for the next workstation 3

1.3 Spillage due to the maintenance of the machine issues 4

1.4 The product of yellow brass safety pin 5

2.1 Principle of LM 11

2.2 Example of Value Stream Mapping Tools 21

3.1 Project methodology 25

3.2 Overall Process flow for safety pin product 27

3.3 Stop watch for data collection 30

3.4 Passivation Process Flow 32

3.5 Drawn the customer, supplier and production control icon 33 3.6 Draw a data box below the customer icon and customer

requirement 34

3.7 Third step in developing CSM 34

3.8 Fourth step in developing CSM 35

3.9 The process attributes are entered in the data boxes 35

3.10 The information flow 36

3.11 The inventory is stored between processes is drawn 37

3.12 The arrow is drawn to show the push system 37


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3.14 Ishikawa Diagram 41

3.15 Final year project (part 1) Gantt chart 43

3.16 Final year project (part 2) Gantt chart 44

4.1 Process flow for safety pin product 46

4.2 Pointing Process (Workstation 1) 47

4.3 Machine in production of safety pin 51

4.4 Output for one safety pin machine 51

4.5 Safety pin is pack for 1 load 51

4.6 Washing process of safety pin 54

4.7 The item is sulphuric acid, cap activator, hydrogen 54

4.8 Water rinsing 54

4.9 Drying process 54

4.10 Process Flow Chart for Passivation Process 56

4.11 Inspection of yellow brass safety pin 58

4.12 Insert the safety pin into the poly bag 59

4.13 The safety pin is counting 59

4.14 The poly bag is silt and make the below outer cover 59

4.15 Make the upper outer cover 59

4.16 Make the upper outer cover and place the poly bag safety pin 60

4.17 Insert the outer to the carton 60

4.18 Position of operator for manual packing process 60

4.19 Plastic wrapped process on the carton 63

4.20 The pallet will transfer to the shipping area 63


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4.22 Current State Map (CSM) 66

4.23 VSM Icons 67

4.24 Percentage of value added activity and non value added activity. 69

4.25 Yamazumi Chart 70

4.26 Analysis of Four Workstation that exceed the takt time 71

4.27 Ishikawa Diagram 73

4.28 Pointing process in VSM 77

4.29 Assemble process in VSM 78

4.30 Arrangement of box that filled with stem before enter the assemble

process 78

4.31 Passivation Process in VSM 79

4.32 Quality Control Inspection in VSM 80

4.33 Packaging in VSM 81

4.34 Staging area in VSM 82

4.35 Checking process in VSM 83

4.36 Palletizing process in VSM 84

4.37 Previous spinal blade 85

4.38 New spindle blade 85

4.39 Previous downtime sheet 88

4.40 New downtime sheet 89

4.41 All tools in the tool box 90

4.42 5’S Implementation for all tools 90

4.43 Waiting Product 91

4.44 Company Passivation Planning 92


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4.46 Quality Control area 94

4.47 Label template for urgent item 95

4.48 Label template for non-urgent item 95

4.49 No color code for the batch 95

4.50 Color code for the batch 96

4.51 Illustration on the storage area for all loads at staging area 96

4.52 Racking System at Inventory Area 97

4.53 Purpose FIFO Racking System 98

4.54 Change in cycle time for pointing process in FSM 98 4.55 Change in lead time for passivation process in FSM 99 4.56 Change in lead time for quality control inspection process in FSM 99 4.57 Change in lead time for packaging process in FSM 100

4.58 Future State Map (CSM) 102


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LIST OF ABBREVIATION

VSM - Value Stream Mapping

CSM – Current state Map FSM – Future State Map LM - Lean Manufacturing

VA - Value Added

NVA – Non Value Added

NNVA – Necessary but non value added SMED – Single Minute Exchange Dies JIT – Just In Time

FIFO – First In First Out


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CHAPTER 1

INTRODUCTION

Throughout this chapter, it contains about the background of study, the problem statement, includes the objectives to be achieved throughout the project and the scope of the study. The limitation of the product study is also included in this chapter. Throughout this chapter, it provides a structure of the report which generally describes about chapter division and related contents to that particular chapter. In overall, it summarizes the progress of the whole project, describing how the whole project has been done.

1.1 Background of study

ABC Consumer Sdn Bhd is one of the companies which manufacture of sewing components and specialized sewing component and garment accessories. With perfect facilities, efficient management and total customer-orientation, they fulfill their claim of always maintain the great performance. Present, industrial sector become competitive market where all the companies faces competition strive to increase their efficiency. Throughout this century ABC Consumer successfully adapted to this new environment, but the commitment to quality has always remained number one priority. As an international group of businesses, they are well aware of


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stage of the production process. The fact of increasing labor cost as well as reduce and control the operating cost are just a few reasons companies choose to outsource their operation. Instead of minimize their impact on natural resources at every stage of the production process; they were seeking to maximize customer value while minimizing waste. From these issues, by implement the lean manufacturing tools in the company, they can reduce any waste which is effect on increasing cost and toward on satisfy the customer demand. Leans can be defines as create more value for customer with fever resources which the value is any action or process that a customer would be willing to pay for. The main principle of lean is customer value, value stream, continuous flow, pull and perfection.

The main purpose of lean manufacturing is to eliminate or reduce waste in an operation, such as long lead times, defect and material waste. In order to detect where waste occurs in the operation flow, a value stream mapping (VSM) is construct. VSM is often used to prove current manufacturing processes to create better future state processes. It is important for companies to increasing and conducts business strategies to satisfy the customer demand.

1.2 Problem Statement

Present, industrial sector becoming competitive market, all companies globally strive to increase their efficiency same goes to ABC Consumer Sdn Bhd. This company produces in high volume of sewing components and garment accessories. Due to the high demand of the product and strive to increase their efficiency, the company needs to reduce their current issues which is waste. Today, many industrial sectors face critical waste so they purpose to reduce their waste. Waste is anything that does not give any value to the product and it will affect the performance for the operation. The existence of seven type of waste which is transportation, defect, waiting, motion, over processing, unnecessary processing and inventory storage will affect the performance for the operation progress if no solution will be implementing. This project was conducted in ABC Consumer Sdn Bhd which is produces in sewing


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pin, straight pin, hook and eyes, snap fasteners and many more. The lack of implementation of lean manufacturing tools and technique, unsystematic arrangement of the workplace, failed to maintain the efficiency of machine, unsystematic planning, certain process have standard operating procedure (SOP), lack of manpower and etc.

Figure 1.1: Unsystematic arrangement of workplace


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Figure 1.3: Spillage due to the maintenance of the machine issues

Figure 1.1 shows a poor arrangement of workplace, Figure 1.2 shows the product waiting for the next process and figure 1.3 shows the spillage due to the maintenance

of the machine issues. If the waste is not eliminate or reduce it can affect the process of the product in terms of lead time, delivery time, quality, system performance, system efficiency and production cost. By implementation of the Lean Manufacturing Tool and Technique, the Value Stream Mapping (VSM) Method is purpose. From this method, the causes of the waste can be identified and then preventive action can be taken to eliminate or reduce any related issues.

1.3 Objective

This study embarks on the following objectives:

1) To develop Current State Mapping of textile manufacturing 2) To determine waste by analyse Current State Mapping 3) To develop future state map

1.4 Scope

This project focuses on the product faces the high demand from the customer for every month. This project focuses on the yellow brass safety pin. Figure 1.4 shows


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production process, passivation process, quality inspection, packing and palletizing. The focus on this project is proposing some improvement to the company to eliminate or reduce waste and lead time.

Figure 1.4: The product of yellow brass safety pin

This project focuses on the development of Value Stream Mapping (VSM) as one the tools to improve the performance. The study will also include identifying the Lean Manufacturing practice implemented by the company.


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1.5 Structure of the Report Chapter 1: Introduction

This chapter explains and focus about the background of study, problem statement, objectives and the structure of the report the scope of the study.

Chapter 2: Literature Review

This chapter focus on any information which is related to the project. Then, need to summarize the main idea. By following the information from past studies, research and books, it will show a path and guide for the project in the future.

Chapter 3: Methodology

It describes the overview of research methods, research flow or methodology, and how to conduct the research methods. It shows the procedures and workflow of this project in detail from the beginning.

Chapter 4: Result and Discussion

This chapter focus on process flow analysis from the data, development of current state map and analysis. From the analysis, the action is purposed to develop the future state map.

Chapter 5: Conclusion and Recommendation

This chapter focus on the conclusion based on the research that was conduct. State the recommendation to shows that the research can be applies to another type of product since the company produce variety of product.


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CHAPTER 1

INTRODUCTION

Throughout this chapter, it contains about the background of study, the problem statement, includes the objectives to be achieved throughout the project and the scope of the study. The limitation of the product study is also included in this chapter. Throughout this chapter, it provides a structure of the report which generally describes about chapter division and related contents to that particular chapter. In overall, it summarizes the progress of the whole project, describing how the whole project has been done.

1.1 Background of study

ABC Consumer Sdn Bhd is one of the companies which manufacture of sewing components and specialized sewing component and garment accessories. With perfect facilities, efficient management and total customer-orientation, they fulfill their claim of always maintain the great performance. Present, industrial sector become competitive market where all the companies faces competition strive to increase their efficiency. Throughout this century ABC Consumer successfully adapted to this new environment, but the commitment to quality has always remained number one priority. As an international group of businesses, they are well aware of


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their responsibilities, and seek to minimize their impact on natural resources at every stage of the production process. The fact of increasing labor cost as well as reduce and control the operating cost are just a few reasons companies choose to outsource their operation. Instead of minimize their impact on natural resources at every stage of the production process; they were seeking to maximize customer value while minimizing waste. From these issues, by implement the lean manufacturing tools in the company, they can reduce any waste which is effect on increasing cost and toward on satisfy the customer demand. Leans can be defines as create more value for customer with fever resources which the value is any action or process that a customer would be willing to pay for. The main principle of lean is customer value, value stream, continuous flow, pull and perfection.

The main purpose of lean manufacturing is to eliminate or reduce waste in an operation, such as long lead times, defect and material waste. In order to detect where waste occurs in the operation flow, a value stream mapping (VSM) is construct. VSM is often used to prove current manufacturing processes to create better future state processes. It is important for companies to increasing and conducts business strategies to satisfy the customer demand.

1.2 Problem Statement

Present, industrial sector becoming competitive market, all companies globally strive to increase their efficiency same goes to ABC Consumer Sdn Bhd. This company produces in high volume of sewing components and garment accessories. Due to the high demand of the product and strive to increase their efficiency, the company needs to reduce their current issues which is waste. Today, many industrial sectors face critical waste so they purpose to reduce their waste. Waste is anything that does


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components and garment accessories supplier to customer such as safety pin, ball pin, straight pin, hook and eyes, snap fasteners and many more. The lack of implementation of lean manufacturing tools and technique, unsystematic arrangement of the workplace, failed to maintain the efficiency of machine, unsystematic planning, certain process have standard operating procedure (SOP), lack of manpower and etc.

Figure 1.1: Unsystematic arrangement of workplace


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Figure 1.3: Spillage due to the maintenance of the machine issues

Figure 1.1 shows a poor arrangement of workplace, Figure 1.2 shows the product waiting for the next process and figure 1.3 shows the spillage due to the maintenance

of the machine issues. If the waste is not eliminate or reduce it can affect the process of the product in terms of lead time, delivery time, quality, system performance, system efficiency and production cost. By implementation of the Lean Manufacturing Tool and Technique, the Value Stream Mapping (VSM) Method is purpose. From this method, the causes of the waste can be identified and then preventive action can be taken to eliminate or reduce any related issues.

1.3 Objective

This study embarks on the following objectives:

1) To develop Current State Mapping of textile manufacturing 2) To determine waste by analyse Current State Mapping 3) To develop future state map


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product of yellow brass safety pin. The operation flows that focus in this project are production process, passivation process, quality inspection, packing and palletizing. The focus on this project is proposing some improvement to the company to eliminate or reduce waste and lead time.

Figure 1.4: The product of yellow brass safety pin

This project focuses on the development of Value Stream Mapping (VSM) as one the tools to improve the performance. The study will also include identifying the Lean Manufacturing practice implemented by the company.


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1.5 Structure of the Report

Chapter 1: Introduction

This chapter explains and focus about the background of study, problem statement, objectives and the structure of the report the scope of the study.

Chapter 2: Literature Review

This chapter focus on any information which is related to the project. Then, need to summarize the main idea. By following the information from past studies, research and books, it will show a path and guide for the project in the future.

Chapter 3: Methodology

It describes the overview of research methods, research flow or methodology, and how to conduct the research methods. It shows the procedures and workflow of this project in detail from the beginning.

Chapter 4: Result and Discussion

This chapter focus on process flow analysis from the data, development of current state map and analysis. From the analysis, the action is purposed to develop the future state map.

Chapter 5: Conclusion and Recommendation

This chapter focus on the conclusion based on the research that was conduct. State the recommendation to shows that the research can be applies to another type of product since the company produce variety of product.