International Journal of Mechanical Engineering and Technology (IJMET), ISSN 0976 6340(Print), ISSN 0976 6359(Online) Volume 3, Issue

ue 1, January- April (2012), IAEME

INTERNATIONAL JOURNAL OF MECHANICAL ENGINEERING AND TECHNOLOGY (IJMET)

ISSN 0976 6340 (Print) ISSN 0976 6359 (Online) Volume 3, Issue 1, January- April (2012), pp. 14-23 IAEME: www.iaeme.com/ijmet.html Journal Impact Factor (2011) - 1.2083 (Calculated by GISI) www.jifactor.com

IJMET
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PERFORMANCE MEASUREMENT FRAME WORK DEVELOPMENT IN MANUFACTURING INDUSTRIES BY THE APPLICATION OF THEORY OF CONSTRAINTS
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Boby K George1 and Dr. Shouri P.V. 2 Ph.D Research Scholar, Anna University of Technology Coimbatore, Tamilnadu E-mail:bobykgeorge@yahoo.com 2 Head, Dept. of Mechanical Engineering, Govt. Model Engineering College, Cochin, Kerala, India. E-mail: pvshouri@yahoo.com

ABSTRACT Performance measurement is a prerequisite to performance improvement. Effectual management of manufacturing process and throughput enhancement is critical for fiscal viability and an extensive survival of any industry. The scope of this paper is focused in the recital improvement of manufacturing industries which are the foremost pillar to the Indian economy. In order to track down the factual constraints of the performance improvement, an exhaustive study has been conducted in selected manufacturing industries in India. A model industry was chosen amid them and the assorted performance measure of the production flow line is intended and the holdups of the system constraints were acknowledged. The Theory of Constraints (TOC) optimization technique is selected and applied to the production flow line in order to pull up the system constraints A model robotic work cell was developed and simulation analysis has done. Finally, for applying the performance measurement system in analogous type manufacturing industries, a conceptual frame work was developed with diverse measuring criteria. Keywords: production flow, performance measurement, bottleneck, throughput improvement. 1. INTRODUCTION Manufacturing industries are one among the leading wealth producing sectors of Indian economy. The results of the manufacturing industry analysis imply that the Indian manufacturing industry has a significant role in the economic development of our country (Ahlusalia I.J., 2008). The work is initially concentrated in the study of the performance measurement system which is presently followed by the consultants and 14

International Journal of Mechanical Engineering and Technology (IJMET), ISSN 0976 6340(Print), ISSN 0976 6359(Online) Volume 3, Issue 1, January- April (2012), IAEME

industrialists of the similar field. Also the modern concepts proposed by the researchers and the practical findings of the industries in the same field are analyzed in the initial phase. An extensive literature survey was conducted to understand and get a clear picture of the existing performance measurement system. Using these theoretical and practical frames of reference, the interrelationship between the influencing factors was studied at various organizational levels with different criteria and after that a performance measuring frame was developed, which is applicable for similar manufacturing industries. The proposed frame considers the stakeholders need in different business environment and other relevant operational factors which has influence in the manufacturing effectiveness of the organization.

2. FORMULATION OF CRITERION FUNCTION The study is initially concentrated in large scale continuous manufacturing industries which are continuously producing a finished product or semi finished product by mass production. As part of the problem identification, a detailed survey was conducted in selected manufacturing industries including glass bottle manufacturing plant to find out the various constraints associated in the functional level(Fig:1) and process level(Fig:2).

45 40 35 30 25 20 15 10 5 0

Production Loss %

Plant Plant Plant Plant Plant

A B C D E

Moulding Unit

Despatch

Fig 1 Production loss percentage comparison in the various stages of the production flow line of different glass bottle manufacturing plants

Batching Unit

Process stages in Production flow line

Feeding Unit

Inspection & Packing

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International Journal of Mechanical Engineering and Technology (IJMET), ISSN 0976 6340(Print), ISSN 0976 6359(Online) Volume 3, Issue 1, January- April (2012), IAEME

30 25 20 15

Loss %

10 5 0

Batching Unit Feeding (Semi Finished) Moulding(Finished) Inspection & Packing Despatch

Product QC pass Loss

Product Output Loss

Good Product Rejection

Work in progress Holdup

Extra manpower Usage

Packing Complaints

Performance Measures

Fig 2 Performance measurement in the various units of the production flow line of the glass bottle manufacturing plant 3. APPLICATION OF THEORY OF CONSTRAINTS FOR WORK CELL PERFORMANCE IMPROVEMENT TOC is a management technique philosophy (Goldratt and Cox, 1984) that has been effectively applied to manufacturing process and procedures to improve organizational effectiveness. It is based on the assumption that the systems outputs are determined by its constraints. In the selected bottle manufacturing industry the sequence of operation in the production flow line can be mentioned as follows: Entering into the single liner Bottle flow in Bottle receiving from the IS machine single liner Reaching in the inspection point Bottle Inspection Bottle Sorting Bottle movement to the packing section Waiting in the accumulator for packing Packing the bottles in the tray Packed bottles move to dispatch. The detailed study in production flow line showed that performance loss is happening mainly due to some constraints. The following solutions were generated from the production flow line as part of the performance improvement and it is mentioned in Table 1..

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Other Extra Overheads

HSE Complaints

Human Resource

Availability Loss

International Journal of Mechanical Engineering and Technology (IJMET), ISSN 0976 6340(Print), ISSN 0976 6359(Online) Volume 3, Issue 1, January- April (2012), IAEME

Table 1. Solutions identified for the performance improvement Sl. No 1 2 3 4 5 6 7 8 Performance Measures Product inspection Product sorting Product damage System availability Good product rejection Work in progress holdup Extra manpower allotted Packing complaint Identified Solutions for the performance improvement - Optical inspection system implementation - Vision system and pick and place operation - Line speed control and traffic guidance - Reliability improvement - Better quality control -Traffic control in the production flow line. - Full automation - Inspection and automation

4. MODELLING OF ROBOTIC WORK CELL Modeling and simulation strives to showcase the highest conceivable level of reality in order to determine the conditions indispensable for optimal performance.

Fig 3 Proposed work cell model Based on the strategic study, a robotic centered work cell is designed (Fig: 3) and the normal operations have been assigned to that work cell. A stochastic based continuous process with discrete state space modeling is considered for the calculation of the traffic intensity of the product arrival in the work cell. The operational parameters are identified and the output is estimated based on the empirical calculations.

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International Journal of Mechanical Engineering and Technology (IJMET), ISSN 0976 6340(Print), ISSN 0976 6359(Online) Volume 3, Issue 1, January- April (2012), IAEME

7. WORKCELL SIMULATION Simulation is the representation of a real life system by another system which depicts the important characteristics of the real system and allows experimentation on it (Shouri P.V. and Sreejith P.S, 2008). The following simulation study has conducted based on the work cell formation. 7.1 Monte carlo simulation study The Monte carlo simulation was conducted in the first phase of simulation study and the throughput and setup time (Narahari and Viswanadhan,1992) was predicted as follows. (a) Throughput calculation Maximum value in the predicted throughput = 4880 Expected nos. of bottles arrived in the ith minute = 82 bottles (b) Setup time Calculation Maximum value of the predicted Setup time = 180 Minutes Setup time for the nth setting = 180 Minutes

7.2 Simulation of One IS m/c One type product - One robot configuration In this configuration, the given queuing system has an exponential arrival and exponential service distributions (Table 4). There is single server and the capacity of the system is infinite. The arrival rate and service rate are estimated as follows. Mean arrival rate = 10 hr or 1/6 per minute. Mean service rate = 15 hr or 1/4 per minute. Table 4. Simulation Result :1M/c-1 Product-1 Robot configuration Run 100 200 300 500 1000 2000 Avg. Waiting Time (mts) % Server Idle Time(mts) Qmax(mts)

10.80 2.15 5 8.61 13.69 7 6.73 15.34 7 5.48 32.68 7 7.63 35.07 7 7.74 32.59 7 The system stabilizes after some time with an average waiting time of 7.74 minute per arrival, with the server idle time of about 32.59% and in a maximum queue of 7. 7.3 Simulation of one IS m/c one type product two robot configurations In this configuration, the simulation system is designed for processing of more number of bottle with two robots. In this system, the mean arrival time is considered as three minutes and the servers one and two take exactly five and seven minutes respectively to serve a customer. Simulate the system for the first one hour of 18

International Journal of Mechanical Engineering and Technology (IJMET), ISSN 0976 6340(Print), ISSN 0976 6359(Online) Volume 3, Issue 1, January- April (2012), IAEME

operation. The arrivals are distributed exponentially, while the services times are deterministic (Fig 5 and Table 5). The idle time of server one is estimated as 17.75% and server two is 15.12% Fig. 5 Simulation model Two machine One type bottle 2 robots packing Table 5. Simulation of 1M/c-1 Product-2 Robot configuration Sl. No 1. 2. 3. 4. 5.. 6.. 7.. 8.. 9. Operation Details Value Mean arrival time 3.00 minutes expn.. Service time Server 1 5.00 minutes Service time Server 2 7.00 minutes Simulation run (Elapsed time) 1001.13 minutes Number of customers arrived 334 Number of customers returned without service 45 Number of customers served (21 3) 18 Idle time of Server 1 177.72 minutes Idle time of Server 2 151.33 minutes (Out of 41 observations, there was queue on 13 times) % Idle time of Server 1 = (13.80 / 63.80) 100 17.75% % Idle time of Server 2 = (21.48 / 63.80) 100 15.12%

10. 11.

7.4 Simulation of one IS m/c two products two robots configuration In this system, a mixture of bottles A and B are passing and then sorted into two groups. Then components type A are processed at robotic work cell A and type B are processed at robotic workstation B .Robot A and B has normally distributed processing times, with mean values of 4.0 and 10.0 minutes and standard deviations of 2.0 and 5.0 minutes respectively. Then a program was developed and the output of this program for a run of different time period is mentioned below (Table 6). Table 6. Summarized Simulation Results Length of run(mts) 1,000 2,000 5,000 10,000 20,000 50,000 Idle Time of A (%) Idle Time of B (%) AWTCA AWTCB Max Buffer A 19.58 82.51 7.88 0.69 6 23.81 79.12 6.03 1.44 6 28.06 81.02 5.68 1.66 6 27.77 81.41 5.58 1.39 7 26.44 80.11 6.40 1.30 9 26.69 79.59 6.46 1.42 11

Max Buffer B 1 1 2 2 2 3 The consequence of the simulation study divulges that the proposed work cell can function well in a continuous operation. The performance of the work cell can further be enhanced by the application of TOC.

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International Journal of Mechanical Engineering and Technology (IJMET), ISSN 0976 6340(Print), ISSN 0976 6359(Online) Volume 3, Issue 1, January- April (2012), IAEME

8. PERFORMANCE IMPROVEMRNT BY TOC APPLICATION The study is conducted with experimental setup of the robotic work cell ( Groover, 2006) with ER-14 SCARA robot. Different samples of bottles were selected and physically feed to the robot in order to check the performance of the pick and place operation and inspection. The various parameters were noted and the constraints were identified. The constraints were analyzed one by one and the solutions were implemented for performance improvement. The result is presented in Fig 4. After the application of TOC in the production flow line the value of the performance measures shows a great improvement. It means that the designed work cell is performing well and the constraints were eliminated to a great extent. By the application of TOC in the work cell operation a remarkable improvement in the performance measures has achieved.
100
Performance %

95 90 85 80 75 70
Production flow HSE Product Acceptance Resource Utilization System Availability Product O/P QC pass Packing Manpower Utilization H R Efficincy

Syst em Performance Before T OC Applicat ion Syst em Performance After T OC Applicat ion

Parameters

Fig 4 System performance before and after TOC application The study identified that the installation of a robotic work cell in the production flow line will improve the performance of the organization. 9. DEVELOPMENT OF A CONCEPTUAL PERFORMANCE IMPROVEMENT FRAME WORK FOR

In order to apply the verdicts of the performance progress to further industrial system in an indiscriminate way, a performance measurement frame work was developed for manufacturing industries (Tangen, 2004) and presented in Table 7. The framework for performance measures and matrices are developed based on the performance measuring factors which were used in the developed model for the production flow analysis with TOC. Individual firms will certainly have performance measurement needs that reflect the unique operation of their process. This frame work should be regarded as a starting point for the assessment of the need for manufacturing performance measurement.

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International Journal of Mechanical Engineering and Technology (IJMET), ISSN 0976 6340(Print), ISSN 0976 6359(Online) Volume 3, Issue 1, January- April (2012), IAEME

Table 7 Development of performance measurement framework

No Criteria for Performance Measure of 1 Customer satisfaction 1.Quality complaints 2.Bad parts acceptance 3.Timely delivery 4.New customer addition 1.Quality complaints 2.Bad parts acceptance 3.Timely delivery 4.New customer addition 1.Capacity utilization 2.Cycle time 3.Flexibility 1.Reliability 2.Cost of maintenance 3. Equipment effectiveness 1.Operating cost 2.EBQ 3.Inventory 1.Training programs Skill improvement workshops 1.Management relationship 2.No of resignation 3.Grievances 1.No of accidents 2.Compensations 3.Legal issues 4.Protective equipment use 1.Quality complaints 2.Bad parts acceptance 3.Timely delivery 4.New customer addition 1.Capacity utilization 2.Flexibility 3.No of stops 1.Reliability 2.Cost of maintenance 3. Equipment effectiveness 1.Operating cost 2. Inventory 1.Training programs Skill improvement workshops 1.Management relationship 2. No of resignation 3. Grievances 1.No of accidents 2.Compensations 3.Legal issues 4.Protective equipment use Strategic Organizational Level Tactic Operational

Machine operation

1.Capacity utilization 2.Cycle time

Maintenance aspects

1.Reliability 2.Cost of maintenance 3.Equipment effectiveness

Cost aspects

1.Production cost per ton 1.Training programs

Innovative ideas

Job aspects

1.Management relationship 2.No of resignation

HSE aspects

1. No of accidents 2.Compensations 3.Legal issues

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International Journal of Mechanical Engineering and Technology (IJMET), ISSN 0976 6340(Print), ISSN 0976 6359(Online) Volume 3, Issue 1, January- April (2012), IAEME

10. CONCLUSION The major focus of the work was on the development of a scientific management based performance measurement framework which is a practical elucidation for the manufacturing industries that are facing operational snags in their production flow line. The major findings of this study are summarized below. 1. A performance measurement survey was done in designated manufacturing industries and acknowledged that about 65.53% constraints were concomitant in the production section of the industry and about 51.26% of the constraints were identified in the ending juncture of the production flow line. 2. In order to improve the performance effectiveness in the production flow line, an operation management optimization technique TOC is selected and applied to the system and the solutions for performance improvement were identified. 3. Simulation study was done in the modeled work cell with different configuration of machines, products and robots. The results of the study indicated that the production flow was normal and there was negligible waiting time for the processing. 4. TOC is effectively applied in the robotic work cell and substantial performance improvement was attained by its application. 5. In order to apply the performance measurement system in analogous type manufacturing industries, a conceptual frame work has developed with diverse measuring criteria for the different organizational level with different linking strategies of the manufacturing effectiveness. Continuous improvement is a contemporary management technique which is extensively followed in manufacturing industries for performance improvement. Thorough knowledge about the prevailing system, its shortfalls, and the meticulous requirement for the modification has to be identified in advance in order to implement the TOC. So if more iteration is performed with the help of theory of constraints, the through-put can be maximized and the overall rate of performance of the organization can be improved to a great level.

12. REFERENCES 1 2 3 Ahlusalia, I.J.(2009), Productivity and Growth in Indian Manufacturing, Oxford University Press, Delhi. Goldratt E.M. and Cox J(1984), The Goal: An Ongoing Improvement Process, North River Press, New York. Groover M.P.(1996),Automation, Production Systems and Integrated Manufacturing, Prentice Hall India (P) Ltd., New York. Computer

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International Journal of Mechanical Engineering and Technology (IJMET), ISSN 0976 6340(Print), ISSN 0976 6359(Online) Volume 3, Issue 1, January- April (2012), IAEME

4 5

Narahari.Y, Viswanathan N. (1992)Performance Modeling of Automated system, Prentice Hall, NJ,1992 Tangen S. (2004), Performance measurement: From philosophy to practice, International Journal of Productivity and Performance Management, 53(8): pp.726-737 Shouri PV and Sreejith PS. Algorithm for break even availability allocation in process system modification using deterministic valuation mode incorporating reliability. Energy Conversion and Management 49 (2008) 13801387.

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