Thesis Final Edit 101814

Relocation of Mechanism Assembly and Work Cell Modification: Approach for
Productivity Improvement of Packaging Department at Epson Precision Philippines

Incorporated (EPPI)
An Undergraduate Research Paper Presented to the Faculty of the

College of Engineering and Computing Sciences
Batangas State University
Marauoy, Lipa City
In Partial Fulfillment
Of the Requirements for the Degree of
Bachelor of Science in Industrial Engineering
By:
Gutierrez, Ma. Christine Ann C.
Mantuano, Cherrylyn M.
Villapando, Charlene L.
Company Profile
1
Company History
Epson Corporate Vision
Epson has a mid-term vision known internally as SE15 that crystallizes the
company's vision for the year 2015 and outlines how we plan to become indispensable to
our customers and society.
SE15 Vision Statement
Epson is committed to the relentless pursuit of innovation in compact, energysaving, high precision technologies, and through the formation of group-wide platforms,
will become a community of robust businesses, creating, producing, and providing
products and services that emotionally engage customers worldwide.
Company History
Recognized worldwide as a leading brand in digital imaging and innovations,
Epson continues to exceed customer expectations with its wide range of high precision,
energy-efficient products.
Year 1942, Daiwa Kogyo Ltd. (the predecessor of Seiko Epson Corporation) is
established on the shore of Lake Suwa in Nagano, Japan.
Year 1964, The Seiko Group is selected as the official timekeeper for the
Olympic Games in Tokyo. The compact tabletop quartz clock, Crystal Chronometer QC951, and printing timer play important roles at the event.
Year 1968, The EP-101, the world's first miniprinter, is launched, from which the
Epson brand was later born.
Year 1975, The
Epson brand is established.
Year 1985, Suwa Seikosha Co., Ltd. and Epson Corporation merge to establish
Seiko Epson Corporation (SEC).
Year 1989, Epson launches one of the world's first compact, full-color liquid
crystal video projectors.
Year 1992, Epson receives the Stratospheric Ozone Protection Award from the
U.S. Environmental Protection Agency for completely eliminating CFCs from
manufacturing processes at all factories in
Japan.
Year 1993, the first inkjet printer equipped with Epson's Micro Piezo technology
hits themarket.
Year 1994, Epson revolutionizes data projection with its acclaimed compact, high
brightness, and high resolution projector.
Year 1996, Epson established a representative office in the Philippines (EPRO) the first sales and marketing company of SEC in the country. Its debut products were the
Serial Impact Dot Matrix (SQ2550) and Inkjet Printer (Epson StylusTM
300).
Year 1998, Epson Representative Office (EPRO) was upgraded to a full-fledged

digital imaging solutions company--Epson Philippines Corporation (EPC).
Year 20002001, Received from Epson Singapore Pte. Ltd (ESP) the Chairman's
Award - Silver Category for high sales record.
Year 2002, Became a wholly-owned subsidiary of Epson Singapore. EPC
received Seiko Epson (Japan) President's Award for Excellence as a result of achieving
80% Sales on Ink Genuine Ratio. EPC received the ESP Chairman's Award - Gold
Category for high sales record.
Year 2003, for the second time, EPC received the Presidents Award for being the
top sales contributor in the region;
Year 2004, Marks the highest sales in single function entry level inkjet printer
(Epson Stylus C45) in the region and thus began a series of top selling figures on inkjet
printers in the Philippine market. Epson participates in the United Nations Global
Compact.
Year 2005, Marks the year where the 1 million unit of Epson ink cartridge was
sold.
Year 2007, was established as the "printer of choice" for one of the most
historical photo exhibits in the Philippines entitled "Large 8 an Exhibit in PhotoAbstraction", participated in by 8 prestigious photographers: Bien Bautista, Ben Cab,
Quincy Castillo, Emil Davocol, Pancho Escaler, Jojo Guingona, Wig Tysmans, and Jaime
Zobel.
Year 2008, Celebrated 10 years of exceeding customer expectations in the

Philippines. Established the 2nd and largest Epson Solution Center in the South and
South East Asia region. Launched the Epson Stylus Office printers for small and
medium businesses (SMEs). First in the region to initiate the 3LCD Technology Forum.
Epson establishes the environmental positioning statement, Better Products for a Better
Future.
Year 2010, Epson Philippines launched the Epson Solution Center in Cebu.
Year 2011, Epson Philippines launched Epson Solution Center in Davao.
Launched the revolutionary L-Series genuine ink tank system printers.
Year 2012, Epson introduced five new models of the L-Series genuine ink tank
system printers to offer customers more choices in terms of speed and reliability, while
continuing to reduce ownership
EPSON PRECISION (PHILS.), INC. HISTORY
Year 1994 marks the birth of the first Epson affiliate in the Philippines, Epson
Precision (Philippines), Incorporated (EPPI).
EPPI was incorporated last December 15, 1994 through the effort of its
organizers, SEC, EPH, the Philippine government and SGV Company. Its factory is
situated within 43,200 square meter lot in LISP, Cabuyao, Laguna.
EPPI was granted its PEZA registration also on December 1994. February 1995
witnessed the EPPI Laguna Groundbreaking.
Finally, on September 1995 was the start of production of EPPIs products which
are mini-printers.
On March 1996, EPPI Laguna started manufacturing its newest product which is
Power Supply Board. On January 1997, EPPI was awarded the international seal of
quality excellence via ISO Certification of Mini-Printer Division.
EPPI HISTORY
November 1998 marked another milestone in the history of Epson Operation in
the Philippines via the ground breaking of another EPPI factory, which is EPPI Lipa
Plant. Its factory lot area is 130,000 square meters. EPPI Lipa Plant is located at LIMA
Technology Center, Lipa City, province of Batangas.
EPPI Lipa Plants main products are ink-jet printers and mechanical parts as
Printed Circuit Boards. It started its first production on September 1998.
SEC MANGEMENT PHILOSOPHY

Epson is a progressive company, trusted throughout the world because of our
commitment to customer satisfaction, environmental conservation, individuality, and
teamwork. We are confident of our collective skills and meet challenges with innovative
and creative solutions.
Progressive Company: Epson is an innovative enterprise that actively embraces new
ideas. It is an open company whose management foundations and methods are fully
disclosed, and it fulfills its responsibilities in evolving together with society.
Trusted throughout the world: As a global enterprise doing business in an increasingly
borderless world, it is more important than ever to win the trust and confidence of people
everywhere.
Environmental Conservation: Addressing environmental concerns with earth-friendly
technology and products is something all businesses must do. Epson has been leader in
this field, having eliminated the group-wide use of CFCs ahead of other companies, and
will continue to be so in the future.
Individuality: One of the most important assets of any company is its human resources.
Epson believes in bringing out the best in each individual and in allowing employees to
make the most of their unique backgrounds and skills.
Confident of our collective skills: The source of Epsons strength is a corporate culture
that encourages employees to work with pride and confidence to seek out creative
solutions and meet challenging goals.
CHAPTER I
THE PROBLEM AND ITS BACKGROUND
This chapter presents the Introduction, Statement of the Problem, Significance of
the Study, Conceptual Framework and Definition of terms. This chapter explains why the
topic was selected and intends to provide information why the proponents think the
research is significant.
INTRODUCTION
In the current manufacturing environment of rapidly changing technologies and
intense competition, the ability to adapt is essential. Thus, manufacturing industries
always strive for improvement like the famous saying, Good enough is never good
enough. Industrialize companies are trying to gain competitive edge by means of
improving layout orientation to achieve the desired level of productivity and to gain a
more customer focus environment.
Evaluating productivity by means of Line Balancing can figure the inefficiency of
operations and to give each operator as close the same amount of work possible.
Furthermore, this also includes the identification of bottleneck operations, establishing
the speed of the assembly line and determination of the number of workstations.
Assembly line balancing can be accomplished by breaking down the jobs into tasks that
needs to be performed by reassembling the number of workloads to the same amount of
time.
As time passes by, several hybrid layouts has emerged that combine flexibility
and efficiency. Reduction set up time has made U- shaped Type Layout feasible. The
8
main features of this type of layout hold into minimization of cycle times and better use
of human resources.
Layout refers to configuration of departments, work centers, and equipment with
particular emphasis on movement of work (customers or materials) through the system.
This section describes the main types of layout designs and the models used to evaluate
design alternatives.
As in other areas of system design, layout decisions are important for the
following reasons: they require substantial investments of money and effort, they involve
long term commitments, which makes mistakes difficult to overcome and they have a
significant impact on the cost and efficiency of operations.
The need for layout planning arises both in the process of designing new facilities
and in redesigning existing facilities. The most common reasons for redesign of layouts
include inefficient operations accidents or safety hazards, changes in the design of
products or services, introduction of new products or services changes in the volume of
output or mix of outputs, changes in methods or equipment, changes in environmental or
other legal requirements and morale problems.
To prioritize rapid improvement method of ASP Mecha Assy Department, the
researchers considered the commitment of the chosen company. Consequently, the
researchers saw the great need for system improvement which also serves as anticipation
in productivity increase.
The purpose of this study is to develop a layout design to heighten the
productivity and every single parameter involved to achieve a desired level of
9
performance. The company is located at LIMA Technology Center, Lipa, province of

Batangas.
STATEMENT OF THE PROBLEM

The current situations of Mechanism Assembly Department prompt the
researchers to conduct a study regarding assembly Line balancing which also has a
significant input on Motion and Time Study and Work Cell Design. This also aims to assess
the effectiveness of U Shaped Type Layout over the traditional Straight Line Type Layout by
answering the following questions.
1. What is the existing layout in terms of:

a) Process distribution
b) Work cell design
Knowledge requirement
Facilities Planning
c) Line balance
theories
on:
2. What are the current production operation
practices in terms of:
and Design
a) Line productivity
Motion
and Time utilization
b) Manpower
Product Layout
3. What
Studyis the current process distribution in terms of:
a) Product layout
These were utilized to
b) Cell
Work
standards
Work
Design
improve
the production
4. What is the significant impact
of the layout
implemented on:
a)
Cycle
time
reduction
set
up
in
terms
of:
Line Balancing
Relocation of Mechanism
b) Productivity improvement
c) Manpower flexibility
Product Layout
Productivity
Assembly and Work Cell
Product layout
CONCEPTUAL
FRAMEWORK
Current production
Assembly Layout
Modification: Approach for
Line Productivity
Productivity Improvement
INPUT
situation in
Mechanism
of Packaging Department
Assembly at EPPI
Low line
productivity
Lack of work
at Epson Precision
PROCESS
Philippines Incorporated
(EPPI)
OUTPUT
standard
Unorganized
layout
10
Figure 1
Figure 1 illustrates the research paradigm of the study showing the inputs, process
and outputs. The first box represents the inputs which show the current production
situation state of the company. The process component meanwhile, represented by the
second box consist of the methods used by the researchers to analyze the current status of
the company. The aiming output is to develop layout design, a key to line balance and
productivity increased.
SCOPE, LIMITATION AND DELIMITATION OF THE STUDY

11
The findings on the study were limited only to the information gathered within on
the job training specifically of three (3) weeks each during the months of December
2013- March 2014 that the company allowed to conduct the research and to all the data
and documents the company provided.
The study was focused on Mechanism Assembly which produces Holder
Shaft (156934501) parts for assembly. The area 280 cm X 720 cm available for
production was based on managements decision. In addition to this, the researcher kept
in mind the manpower fixation and its existing number while obtaining tact time for the
sake of the studys accuracy.
The possible delay of part delivered were out of the scope of the study.
DEFINITION OF TERMS
Assembly Line. An approach that puts fabricated parts together at a series of
workstations; used in repetitive processes.
Average Observed Time. The arithmetic mean of the times for each element measured,
adjusted for each element.
Benchmarking. Selecting a demonstrated standards of performance that represents the
very best performance for a process or an activity.
Engineering Group. This group analyze print head parts and product defects., monitors
and ensures environment condition compliance with standards, prepares monthly
environment report, prepared monthly pending documents report, engineering document
control, daily update of print head analysis reports both in-progress and main assy
defects.
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Gantt chart. Low cost means of helping managers make sure that (1) activities are
planned, (2) order of performance is documented, (3) activity time estimates are
recorded, (4) over al project time us developed.
Hardware. This group carry out line set up set up work tables installation including
electrical requirements as needed by the production. This group design, install, upgrade
work table design, automation as requested by the other department or ideas
conceptualize by the group. This also controls, check operation and maintain the
equipment/ devices which were the group responsibility. Lastly, this supervise the group
preparation activities for specific improvements or modifications to be made on
production.
Line balance. Leveling the workload across all processes in a cell or value stream in
determining the bottlenecks and excess capacity.
Normal time. The average observed time, adjusted for pace.
Process Flow Chart. It is diagram of the steps in a job, operation or process. It enables
everyone involved in identifying and solving quality problems to have a clear picture of
how a specific operations works and a common frame of reference.
Production Efficiency Group. Perform line balance of production line to determine the
improvement points of each line. This creates process improvements whether for new
lines or old lines.
Productivity. Measure of the efficiency of the productive time (producing units) of
production. It is a ratio of production output to what is required to produce (inputs).
13
Product Layout. The product layout approach involves setting up the production
facilities around the steps involved in manufacturing the product. This is the typical
assembly line approach.
Repetitive Timing. Also known as snap back method the hands of the watch are
snapped back to zero at the end of each element.
Standard time. An adjustment to the total normal time; the adjustment provides
allowances for personal needs, unavoidable work delays, and fatigue.
Straight Line Layout. The straight line layout is normally used when products are
produced in large quantities and the number of steps required for their production is few.
Time Study. Time study is used to determine the time required by a qualified and welltrained person working at a normal pace to do a specified task.
U Shaped Type Assembly Line.
This type of assembly line typically have better
balancing, improved visibility and communications, fewer work stations and more
flexibility for adjustments , minimization of operation level and easier material handling.
Work Cell. Reorganized people and machines that would ordinarily dispersed in various
departments into a group so that they can focus in making a single product or group of
related products.
Work Cell Layout. Arranges machinery and equipment to focus on production of a
single product or a group of related products.
Workstation. Is any area along the assembly line that requires at least one worker or one
machine.
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SIGNIFICANCE OF THE STUDY

This study entitled Relocation of Mechanism Assembly and Work Cell
Modification: An Approach for Productivity Improvement of Packaging Department at
Epson Precision Philippines Incorporated (EPPI) hopes to benefit the following:
To the company, it will help them utilize the working hours by cycle time
reduction and attaining a more flexible workforce and stable production.
To the employees, it will boost their self-esteem towards work because they are
able to comply with the target number of outputs. By rendering work standards it will
ease their process that will ensure their functionality and flexibility.
To the Department of Industrial Engineering, they will be knowledgeable of the
importance of having a design and development project. It is always a must for Industrial
Engineers to create and improve things.
To the proponents, the study serve as an effective training ground for them to
apply the knowledge gain from school to the real world of business.
To the future researchers, this study may serve as a reference and source of
information as they conduct similar research.
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CHAPTER II
REVIEW OF RELATED LITERATURE
This chapter presents the related studies which helped the researchers in the
formulation of the problem and the application of methodology in their study.
CONCEPTUAL LITERATURE
MOTION AND TIME STUDY
Time study, predetermined time systems, standard data, and work sampling are
used for measuring work in industry. Time study is the most versatile and the most widely
used. It is also used to determine the time required by a qualified and well-trained person
working at a normal pace to do a specified task. Time study is used to measure work. The
result of time study is the time that a person suited to do the job and fully trained in the
16
specified method will need to perform the job if he or she works at a normal or standard
tempo. This is called the standard time for the operation.
Although time study originally had its greatest application in connection with
wage incentives, it and the other methods of measuring work are now used for many
other purposes including: determining schedules and planning work; determining
standard cost and as an aid in preparing budgets; estimating the cost of a product before
manufacturing it; determining machine effectiveness, the number of machines which one
person can operate, and as an aid in balancing assembly lines and work done on
conveyor; determining time standards to be used as a basis for the payment of wage
incentive to direct labor and indirect labor; and lastly in determining time standards to be
used as a basis for labor cost control.
PRODUCTIVITY
Productivity is a relative measure of the efficiency of a person, machine, factory,
system, etc. in converting inputs into useful outputs. Computed by dividing average
output per period by the total cost incurred or resources (capital, energy, material,
personnel) consumed in that period. Productivity is a critical determinant of cost
efficiency. It is the ratio between finished goods quantity over the manpower utilized and
the amount of goods produced given a certain number of workers, amount of resources
used, and length of time worked. It is may also refer to the optimum use of all resources
or as output per employee refers to the increase in output per work hour or time
expanded. .
LINE BALANCING
17
The process of deciding how to assign tasks to workstations is referred to as line

balancing. The goal of line balancing is to obtain task groupings that represent
approximately equal time requirements. This minimizes the idle time along the line and
results in a high utilization of labor and equipment. Idle time occurs if task times are not
equal among workstations; some stations are capable of producing higher rates than
others. These fast stations will experience periodic waits for the output from slower
stations or else be forced into idleness to avoid buildups of work between stations.
Unbalanced lines are undesirable in terms of inefficient utilization of labor and
equipment and because they may create morale problems at the slower stations for
workers who must work continuously.
Facilities Planning and Design

Facility planning is concerned with the design, layout, and accommodation of
people, machines and activities of a system or enterprise within a physical spatial
environment. Facility planning is very important in a manufacturing process due to their
effect in achieving an efficient product flow. It is estimated that between 20%-50% of the
total costs in manufacturing is related to material handling. This cost can be reduced until
30% through an effective facility planning. Proper analysis of facility layout design could
improve the performance of production line such as decrease bottleneck rate, minimize
material handling cost, reduces idle time, raise the efficiency and utilization of labor,
equipment and space.
PRODUCT LAYOUT
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Product layouts are used to achieve a smooth and rapid flow of large volumes of
goods or customers through a systems. This is made possible by highly standardized
goods or services that allow highly standardized repetitive processing. The work is
divided into a series of standardized tasks, permitting specialization of equipment and
division of labor. The large volumes handled by these systems usually make it
economical to invest substantial sums of money in equipment and job design. Because
only one or few very similar items are involved, it is feasible to arrange an entire layout
to correspond to the technological processing requirements of the product or service.
U- SHAPED TYPE LAYOUT

A U shaped flow line is a variation of the straight line flow structure. It follows
the concept of group technology, where parts of similar processing characteristics are
grouped together for a processing in a common area, or manufacturing cell. The shape is
unique in that it allows more efficient use of operators tending the machines and it
promotes better communication among workers. U Lines are scalable since they are able
to adjust line output to conform to an increase or decrease in production requirements
based on the demand rate (i.e. line is flexible to production volume changes).Scaling is
done by increasing or decreasing the number of operators in the line.
RELATED STUDIES
19
Different researches and studies relevant to layout, which bear importance to this
study, are presented below and are drawn from different resource materials such as
published and unpublished materials, theses and electronic resources.
LOCAL
According the study of Arellano et al., Optimized Production Capacity through
Facility Layout and Workflow Design at Pilipinas Hino. Inc., facility layout is broad in
general term but the study is limited on a straight line assembly layout and its workflow.
It is focused on optimizing production capacity on straight-line assembly only to improve
the capacity of the assembly line and workflow at Pilipinas Hino. Inc. The research puts
emphasis on the efficiency of the existing production layout which can be accomplished
through improvements of the layout and workflow effectiveness.
The study of Marinay et al., Productivity and Efficiency Improvement through
Machine Downtime Reduction at Hitachi Cable Philippines Inc. focused on QC1-4400
Assembly Line to reduce the machine downtime for the productivity and efficiency of the
machine. The data were gathered through conducting time studies with ten trials of four
PM machines and informal interviews. The machine downtime is reduced through the
proposed application of SMED and relocating the blasting machine, downtime in
changing and cleaning of dies. Proper employment of preventive and corrective
maintenance will minimize, if not totally eradicate the sudden/minute downtime in
cutting and guiding process. The study highly recommends employee empowerment and
also process layout adjustments in order to minimize the transportation distance during
production.
20
In the study made by Ebora et al., entitled Line Balancing: A Key Tool in
Developing Model to Reduce Idle Time and Improve Efficiency in Production Operation
at Baby Garments they study how the unbalanced line problems affect the different
parameters like manpower utilization, machine utilization and labor productivity. In
solving those, they presented each task using Process Flow Analysis to summarize the
number of operations and delay. In determining the output capacity, cycle time and idle
time, they used the formula from Jay Heizer and Barry Render. For the heuristics, they
tested the following: Most number of following task, least number of following task,
shortest operating time, longest operating time, and ranked positional weight. After the
span of time they have in formulating the problem and data gathering, they conducted
that idle time occurred during the study that leads to low labor productivity. Consequently
operators do not meet desired output due to bottleneck. They also found out that it has a
long cycle time due to unorganized production process. Above all, they concluded that
line balancing is a tool that helps the company to reduce the above mentioned problems.
Jewel group (1989), conducted a study at Francisco Motors Corporation, subject

of the study was the Pinoy II DX Line of production. The company had different
departments of operation to develop a motor. It includes Patty department, Body
Assembly department, Mechanical department and painting department. The proponents
objective is to present an ideal sequence time of work and minimize unnecessary delay
and cost towards an optimum production output. They used the Time Study in measuring
the time required for each operation and determining standard time, Line Balancing
21
Technique for balancing the time element of every station to prevent backlog of work at
certain stations and determining the product mix that can be run down on assembly line
to provide a fairly consistent flow of work at the planned time rate and the methods
improvements techniques in simplification, combination of work as well as the
elimination of indirect labor or days.
FOREIGN STUDIES
According to the study of Junying LIU, Assembly Cell Layout and Kanban
System Design for an Oilfield Services Company, the production line operates with a
make-to-order policy, or a pull system. After receiving orders from customers, the
production planner schedules the production according to the current production volume
and capacity and assigns the due dates for the orders. Then work orders are released to
the warehouse and production line. Warehouse will help to prepare the kits according to
the bill of materials (BOM), and deliver the kits to the gauge production cell for the
assembly. This thesis focus on the challenge of redesigning the layout of gauge
production line in order to increase throughput of the assembly line that will meet
increasing customer demand. At first, the demand forecast almost doubles from 3200
pieces in 2010 to 6200 pieces in 2011. Moreover, the forecasting demand rockets to
13,000 pieces in 2013. In terms of daily demand it is equal to 14 pieces per day in 2010,
28 pieces per day in 2011 and 58 pieces per day in 2013. However, currently, the
production line can only build 10 gauges per day on average, which is too slow to fulfill
the increasing demand. Under this circumstance, the company plans to extend the current
assembly cell. Moving it to a new place whose size is twice as large as the current one.
22
By redesigning the value stream of the assembly line and implementing kaizen events,
the company could improve the throughput of gauge production and meet the demand
forecast.
Rabbani et al., (2012) works on mixed model U-line balancing type one problem.
In this new approach to balance a mixed model U shaped production system
independent was developed for any product sequences. This approach was based on
minimization of crossover workstations. In balancing mixed model assembly line in Ushaped line layout was more complicated than that of straight lines. A model was
developed in which minimizing the number of crossover workstations and maximizing
the line efficiency were considered at the same time.
The study of E.J Jordan and S. Matope entitled Improvement of Plant Facility
Layout for Better Labor Utilization: Case Study of a Confectionary Company in the
Western Cape (2013) uses Optimized Production Technique (OPT), Lean Concepts and
other production management methods for facility layout improvement by improving the
flow of product and eliminating waste in plant. Time studies, observations on the existing
facility floor space, interviews with the management including the production managers,
shop floor personnel and company historic data are also used to gather information
required in designing the proposed facility layout. To effectively evaluate the result, the
researchers present the designed alternatives using the concepts of line balancing were
presented with discrete event simulation. This proposed facility layout leads to
productions performance improvement because of maximization of the operational
23
efficiency, minimization of the production time, and maximization of the production

throughput which increase the revenue of the company.
The study made by Yerasi (2011) addresses the productivity improvement of a

manual assembly line by making use of operations analysis in the framework of Lean
production. A methodology is proposed that helps to improves productivity of any
production process. The methodology consists of selecting a product or product family to
be studied followed by the current process study. Once the existing process is
documented, all the assembly tasks involved must be timed using time study techniques.
Assembly line balancing along with the associated operations analysis consists in
constructing or re-configuring an assembly system, which is the key step in improving
the overall performance of an assembly line. Following this approach, two manual
assembly line configurations (single stage parallel line and five stage serial line) are
constructed. The results showed that by changing over to single stage assembly line
configuration the operator productivity is doubled compared to the existing assembly
method.
In the study made by Sane et. al entitled Assembly Line Balancing: A case Study
in Silencer Manufacturing, their study was focused on a assembly line which assembles
four types of products which includes machine steel shot filling, gauge inspection and
leakage testing, cover tube round welding and sizing machine and inspection. For the line
improvement purposes, various Lean Manufacturing tools are employed such as cycle
tome study, line imbalance calculation, bottleneck identification, Kaizen, space utilization
24
throughout layout change. The major problem was to solve the inability to meet
production targets and imbalance of work content at work stations. At the end of the
study, the manpower was reduced from 14 to 11, imbalance ratio from 46.04 percent to
16.48 percent and number of workstations from 14-11. The material handling and
operator movement was also reduced.
SYNTHESIS
On the study of Arellano et al., Optimized Production Capacity through
Facility Layout and Workflow Design at Pilipinas Hino. Inc., the researchers used the
best engineering tool in gathering information, time and motion study. The collected
information was used to determine the efficiency of straight-line assembly for the
development of capacity optimization through facility layout and workflow design. Same
on the study of the proponents, motion and time study was used to determine the time
required by a qualified and well-trained person working at a normal pace to do a
specified task. The result of time study is the time that a person suited to do the job and
fully trained in the specified method will need to perform the job if he or she works at a
normal or standard tempo.
The study of Marinay et al., Productivity and Efficiency Improvement through

Machine Downtime reduction at Hitachi Cable Philippines Inc. have the same goal on the
existing study which is productivity and efficiency improvement. Both study used the
different principles on motion and time study. The study is different in terms of
application between manpower and machine downtime. The study is focused mainly on
25
machine downtime reduction to increase productivity and efficiency while the existing
study is focused on layout modification to attain a higher than mediocre level of
productivity and efficiency.
The study made by Ebora et al., they focused on low production and long
production cycle time to improved man power utilization, machine utilization and
production process. This study is similar to the present study in using Motion and Time
Study in developing and improving production process. Also this study is similar to the
current study in using layout configuration for further improvements. The study has the
following significant remarks: from the existing method using the least number of
following tasks the percent idle time was 18.34 % and decrease to 14.34 % with the
proposed model. From outputs produced per day, it increased to 171 pieces using the
proposed method. In line balancing, several factors are to be considered- facility layout,
cycle time and operators performance. Facility layout enables materials, workers and
information to more efficiently and effectively. It minimizes delays and material
handlings, maintains flexibility, uses labor and space effectively, promotes high employee
morale and provides housekeeping and maintenance.
A study at Francisco Motors Corporation by Jewel group in which the subject of

the study was the Pinoy II DX Line of production, the proponents concluded that the
proper control of operations is needed in order to ensure the productivity and efficiency
of the process. Line Balancing is very favorable in assembly line because it takes into
consideration all the factors that should be maintained and its constraints.
26
On the study of Junying LIU, Assembly Cell Layout and Kanban System Design
for an Oilfield Services Company, describes the layout design of a new gauge assembly
lab for an oilfield services company. Three layouts were proposed based on the
categorization. One layout that facilitated the assembly flow best and met the requirement
of human factors was selected. This new layout enables the company to meet the
increased demand in 2011. In addition, Kanban system was also introduced to this
assembly line to reduce lead time to one month and to reduce inventory by 40%
respectively. The new layout enables the technicians to finish their work with minimum
movement between workstations like the proponents study.
The study of Rabbani et al., focused only on mixed model U-line balancing type
of layout to balance mixed model U shaped production system. This model was
developed to minimize the number of crossover workstations and to maximize the line
efficiency, while the existing study focused first on straight line layout then come up with
U type layout to increase the productivity and efficiency of the line. The study is similar
in terms of maximizing the efficiency of the line.
The study Improvement of Plant Facility Layout for Better Labor Utilization:
Case Study of a Confectionary Company in the Western Cape of E.J Jordan and S.
Matope demonstrates the application of Lean and Optimized Production Techniques
incorporated to facilities design and how the employment of these techniques can
improve labor utilization. The distance of batches travelled was reduced by routing the
27
flow of batches along a shorter path. At the same time unnecessary motion and waiting
was reduced by dedicating staging lanes to products and orderly grouping products
together in a first in first out manner. The reduction of such wastes ultimately increases
labor efficiency. Similar on the existing study was the reduction of idle time, maximizing
the utilization of labor and space were achieved through effective facility planning. The
only difference of the existing study with Matopes study was the used of simulation
software which was not apply on the proponents study, wherein the use of simulation
software has the capability to determine factory conditions which includes the
determination of plant capacity and solving inventory and work in process problems.
In the study made by Yerasi, the three step methodology incorporating Lean
principle is applied to the study problem and two different assembly configurations are
developed and compared namely single stage parallel line and five stage serial line. This
study is barely similar to the current study in using Motion and Time Study in
determining the new output rate. Also, this study is similar in considering assembly line
balancing in configuring assembly line layout which resulted in increase of productivity.
The improved assembly line gives an output of 59.8 boxes/operator/per hour which is
about 100 %increase in productivity from the original method. Also, with single stage
parallel line, the floor space usage is reduced by half compared to the original method.
The study of Sane et al., they study on how to distribute task evenly over the
workstation so that idle time of man and machine can be minimized. They also discussed
identification of wastes to balance the workstation and to and optimize utilization of
28
resources for improving their productivity. This study is alike to the current study in
determining the required cycle time for each process and determining the production
capability of each individual workstation. The line balance was also calculated in this
study. The results and findings includes reduction of work in process, improved
workstation condition, reduction of manpower, achieving production rate and minimizing
line imbalance.
CHAPTER III
RESEARCH METHODOLOGY
This chapter discusses research design, research instrument used, the respondents
of the study, data gathering procedures and the stages developed by the researchers in
making this study.
RESEARCH DESIGN
The type of research method that best fit on the study was developmental or time
series research design in which data are collected at certain points in time going forward.
There is an emphasis on time patterns and longitudinal growth or change. The artifacts of
developmental research include some less obvious outcomes, such as development of
29
new methods and processes for implementing new methods and by using existing tolls at
the Mechanism Assembly of EPPI.
This study aimed to improve line set up design and process of Mechanism
Assembly through standard time and work cell modification.
Since the study is an organized and systematic attempt to determine the standard
time for each process using careful analysis and interpretation of gathered data that would
suggest possible layout and will satisfy the needed output.
RESEARCH TOOLS AND INSTRUMENTS

In order to gather information and data needed in the study, the researchers
conducted trial tact time using repetitive timing to get the standard time.
To gather data, focused group discussion with the managers, line leaders and
operators and participatory observation and analysis were made.
RESPONDENTS OF THE STUDY

The researchers focused on Packaging Department. This department has a great
need to relocate the Mechanism Assembly and to help them improve productivity by
establishing work standards.
30
The respondents of the study were three operators, one line leader, two staff in
charge, one assistant manager, one supervisor (Hardware), and one staff of hardware.
DATA GATHERING PROCEDURE

The researchers conducted trial tact time of different settings (relocation, straight
layout, and u-type) in a span of on the job training specifically of three (3) weeks each
during the months of December 2013- March 2014. Moreover, The Mechanism Assembly
was scheduled only for day shift. The data on this study do not rely on the possible delay
of parts delivery from other section (i.e. subassy).
The formulas used were:

Average observed time:
Sum of the times recorded to perform each element
Average observed time =
Number of observations
Line balance:
Tact time
Line balance
Max. Tact time * No. of manpower
X100%
Normal time:
Normal time= Average observed time x Performance rating factor (1.06)
31
Productivity:
Productivity
Output x Standard time
X 100%
Actual manpower x Actual working hours

Standard time:
Total normal time
Standard Time =
1- Allowance factor (.15)
STAGES DEVELOPED:
Pre Design Stage
This was the stage which encompasses the studies, researching and planning of
how the prototype will be processed. This stage mainly covers the planning activity, data
gathering and information processing and series of meetings together with the persons
involved before the actual design. Thorough analysis about the working area before and
after relocation was done by the top management to evaluate its existing setting.
Design Stage
In this stage, designing the schematic diagram of the prototype was done by the
researcher, other considerations related for the layout fabrication will be based on the
32
companys culture and standards. Based on data gathered, this resulted into a straight line
layout.
Preliminary Testing and Modification
For 3 weeks succession of trial for straight line layout, the researchers found out
that there was an increase in productivity. Although there was an increase in the
productivity, researchers believed that there was a further way of increasing the
productivity to a higher percentage which was supported by the management of EPPI.
Series of studies were conducted by the researchers, which conclude to work cell
modification from Straight Line to U-Type.
CHAPTER IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter presents the gathered data in text and in tabular presentation, the
analysis and interpretation of findings based on the results methodologies applied. The
tables are presented with textual explanations for better understanding.
Initial Situation
In order to craft a potential layout to improve line productivity and efficiency at
Mechanism Assembly of Epson Precision Philippines Incorporated (EPPI) physical
analysis and calculations were done.
33
The researchers conducted time study that enabled them to identify the level of
productivity and the settings that merely served as a hindrance for such level of
performance.
Workers Daily Regular Work Time Schedule

7:00-4:00
Day Shift
Total No. of
Hours in the
Company
Lunch
Break
Tea
Break
9 hrs.
1 hr.
0.33333
Total No. of
Hours Working
7.67
Figure 2
This Figure shows the total working hours used in calculating the output
and line productivity.
34
MECHANISM ASSEMBLY
INITIAL SITUATION
Figure 3.A
Figure 3.B
Figure 3.A and Figure 3.B (Holder Shaft)
35
Pad
Plastic Sheet
Partition
Outer Carton Box
Figure 4 Box Illustration
36
Figure5.a
Figure5.b
Figure 5.c
(Figures 5 a, b and c) Initial Condition at EPPI Packaging Section

37
December 9, 2013
On December 9, 2013 the first trial tact time of the current situation at Packaging
Department was conducted. The total standard time measured was 151.32 seconds which
resulted to an output of 411 boxes per day which is equal to 16,440 units of holder shaft.
The percentage of Line Balance and Line Productivity was initially low, that is why the
researchers continue to study the situation to understand and to solve how to increase the
percentages of both line balance and line productivity.
38
December 10, 2013
On December 10, 2013 the second trial tact time of the current situation at
Packaging Department was conducted. The total standard time measured was 153.61
seconds which resulted to an output of 411 boxes per day which is equal to 16,440 units
of holder shaft. The percentage of Line Balance and Line Productivity increased but only
a small percentage that is why the researchers continue to study the situation to
understand and to solve how to increase the percentages of both line balance and line
productivity.
39
December 11, 2013
On December 11, 2013 the third trial tact time of the current situation at
productivity.
40
December 12, 2013
On December 12, 2013 the fourth trial tact time of the current situation at
productivity.
41
December 16, 2013
On December 16, 2013 the fifth trial tact time of the current situation at
productivity.
42
December 17, 2013
On December 17, 2013the sixth trial tact time of the current situation at
productivity.
43
December 18, 2013
On December 18, 2013 the seventh trial tact time of the current situation at
productivity.
44
December 19, 2013
On December 19, 2013 the eight trial tact time of the current situation at
productivity.
45
January 6, 2014
On January 6, 2014 the ninth trial tact time of the current situation at Packaging
The percentage of Line Balance and Line Productivity increased but only a small
percentage that is why the researchers continue to study the situation to understand and to
solve how to increase the percentages of both line balance and line productivity.
46
January 7, 2014
On January 7, 2014 the tenth trial tact time of the current situation at Packaging
solve how to increase the percentages of both line balance and line productivity.
47
January 8, 2014
On January 8, 2014 the eleventh trial tact time of the current situation at
productivity.
48
January 9, 2014
On January 9, 2014 the twelfth trial tact time of the current situation at Packaging
solve how to increase the percentages of both line balance and line productivity, which
come up with the idea of relocating the packaging department into the line. In order to
calculate the space required for this assembly line, the quantities of workstations, and
materials that are needed in the relocation were determined first, and then the size for
each item was given by the company as their standard sizes.
49
SUMMARY
Day
Line Balance
Line Productivity
75%
75.12%
76%
76.25%
77%
77.29%
77%
77.11%
77%
76.82%
77%
76.88%
78%
77.63%
76%
76.32%
77%
76.88%
10
76%
76.12%
11
785
78.05%
12
78%
78.14%
Average
77%
76.88%
Table 1. Summary of the Percentages of Line Balance and Line Productivity in

Mechanism Assembly Initial Situation
50
The unorganized physical layout resulted to low computed values of line balance
and line productivity.
The highest value of line balance and productivity are 78% and 78.14%
respectively.
51
MECHANISM ASSEMBLY
STRAIGHT LAYOUT AFTER
RELOCATION
52
Figure 6
Figure 7
Figure 8
53
Figure 9
Figure 10
Figure 11. Area for the Plan

54
Figure 12-1(Straight Line) Front View
55
Figure 12-2(Straight Line) Back View
Figure 12-3(Straight Line) Side View 1-1
Figure 12-4(Straight Line) Side View 1-2
56
Figure 12-5(Straight Line) Top View
57
Figure 12-6(Straight Line) Isometric View
Figure 13. Implemented Straight Line Layout
January 13, 2014
58
On January 13, 2014 the first trial tact time of the straight line layout after
relocation at Packaging Department was conducted. The total standard time measured
was 139.60 seconds which resulted to an output of 454 boxes per day which is equal to
18,160 units of holder shaft. The percentage of Line Balance and Line Productivity was
initially low that is why the researchers continue to study the situation to understand and
to solve how to increase the percentages of both line balance and line productivity under
the relocated straight line layout.
January 14, 2014

59
On January 14, 2014 the second trial tact time of the straight line layout after
18,760 units of holder shaft. The percentage of Line Balance and Line Productivity
increased compare to the first trial that is why the researchers continue to study the
situation to understand and to solve how to continually increase the percentages of both
line balance and line productivity under the relocated straight line layout.
January 15, 2014

60
On January 15, 2014 the third trial tact time of the straight line layout after
increased but the researchers continue to study the situation to understand and to solve
how to continually increase the percentages of both line balance and line productivity
under the relocated straight line layout.
January 16, 2014

61
On January 16, 2014 the fourth trial tact time of the straight line layout after
18,360 units of holder shaft. The percentage of Line Balance and Line Productivity is
fluctuating but the researchers continue to study the situation to understand and to solve
January 17, 2014

62
On January 17, 2014 the fifth trial tact time of the straight line layout after
January 21, 2014

63
On January 21, 2014 the sixth trial tact time of the straight line layout after
January 22, 2014

64
On January 22, 2014 the seventh trial tact time of the straight line layout after
January 23, 2014

65
On January 23, 2014 the eight trial tact time of the straight line layout after
January 27, 2014

66
On January 27, 2014 the ninth trial tact time of the straight line layout after
January 28, 2014

67
On January 28, 2014 the tenth trial tact time of the straight line layout after
February 3, 2014
68
On February 3, 2014 the eleventh trial tact time of the straight line layout after
February 4, 2014
69
On February 4, 2014 the twelfth trial tact time of the straight line layout after
increased compare with the straight line layout before relocation. However, there is still
room for improvement to increase the percentages of both line balance and line
productivity. The researchers continue to study the situation to understand and to solve
under the relocated straight line layout which come up with a new layout for the
packaging department which is the U-type layout.
SUMMARY
70
Day
Line Balance
Line Productivity
76%
76.46%
79%
79.30%
80%
79.59%
79%
78.73%
79%
78.95%
78%
78.08%
79%
79.14%
79%
79.09%
78%
78.16%
10
78%
78.13%
11
80%
79.63%
12
78%
78.38%
Average
79%
78.64%

Mechanism Assembly Straight Layout after Relocation
71
After relocating the Mechanism Assembly the computed values resulted to an

incremental level of line balance and line productivity.
The highest value of line balance and productivity are 80 % and 79.59%
respectively.
72
U TYPE LAYOUT
73
Figure 14-1 (U-Type) Front View
Figure 14-2 (U-Type) BackView
Figure 14-3 (U-Type) Side View 1-1

74
Figure 14-4 (U-Type) Side View 1-2
Figure 14-5 (U-Type) TopView
75
Figure 14-6 (U-Type) Isometric View
Figure 15. Implemented U-Type Layout
76
February 10, 2014
On February 10, 2014 the first day of trial tact time of the u-type cell application
at Packaging Department was conducted. The total standard time measured was 56
of holder shaft. The percentage of Line Balance and Line Productivity greatly increased
which is a good point for researchers to continue their study of the new set-up's tact time.
77
February 11, 2014
On February 11, 2014 the second day of trial tact time of the u-type cell
application at Packaging Department was conducted. The total standard time measured
greatly increased which is a good point for researchers to continue their study of the new
set-up's tact time.
.
February 12, 2014

78
On February 12, 2014 the third day of trial tact time of the u-type cell application
at Packaging Department was conducted. The total standard time measured was 56.95
February 13, 2014

79
On February 13, 2014 the fourth day of trial tact time of the u-type cell
set-up's tact time.
February 17, 2014
80
On February 17, 2014 the fifth day of trial tact time of the u-type cell application
February 18, 2014

81
On February 18, 2014 the sixth day of trial tact time of the u-type cell application
February 19, 2014

82
On February 19, 2014 the seventh day of trial tact time of the u-type cell
set-up's tact time.
.
February 20, 2014

83
On February 20, 2014 the eighth day of trial tact time of the u-type cell
set-up's tact time.
February 21, 2014

84
On February 21, 2014 the ninth day of trial tact time of the u-type cell application
February 24, 2014

85
On February 24, 2014 the tenth day of trial tact time of the u-type cell application
February 25, 2014

86
On February 25, 2014 the eleventh day of trial tact time of the u-type cell
set-up's tact time.
February 26, 2014

87
On February 26, 2014 the twelfth day of trial tact time of the u-type cell
35,360 units of holder shaft. This set of trial tact time has greatly increases which are
subjected from the implementation of the dual cell set-up. This then concludes that the
researchers application of the new set-up is a success.
88
SUMMARY
Day
Line Balance
Line Productivity
84%
83.53%
84%
83.60%
84%
83.95%
84%
83.92%
85%
84.61%
84%
83.65%
84%
83.62%
86%
85.76%
84%
84.41%
10
86%
85.56%
11
86%
85.54%
12
87%
86.85%
Average
85%
84.58%

Mechanism Assembly U Type Layout
89
The study come up with the final layout of U-Shaped Type with the computed
values, hence to an incremental level of line balance and line productivity.
The highest value of line balance and productivity are 87% and 86.85%
respectively.
90
LAYOUT
LINE BALANCE
LINE PRODUCTIVITY
BEFORE RELOCATION
77%
76.88%
STRAIGHT LINE LAYOUT
79%
78.64%
U-TYPE LAYOUT
85%
84.58%
Table 4. Summary of the Percentages of Line Balance and Line Productivity of the
Three Layouts
91
Based on calculations made by the researchers on three different layouts, it can be

concluded that the U-Shaped Type Layout has the highest values of line balance and line
productivity.
CHAPTER V
SUMMARY, CONCLUSION AND RECOMMENDATIONS
This chapter presents the summary of the findings from all the data gathered, the
conclusions derived from the results of the study and its recommendation.
92
Summary
In an environment where there is a strong competitiveness between industries,
companies always look for a room of improvement. To achieve this standardization of
process and maximization of available resources must be achieved.
At the Packaging Department of Epson Precision Philippines Inc. where the study
was conducted, the researchers study first the existing condition of the working area. The
researchers conducted trial tact time on the first working setting with the Straight Line
Layout. The physical arrangement of the layout affects the productivity affects the
productivity of the workers as shown in Figures 5 a, b and c. Through motion and time
study, the researchers identified the level of line efficiency and productivity with the
record with the highest value of 77% and 76.88% respectively.
In order to increase the productivity and line efficiency, the researchers with the
help of the management, relocate the Mechanism Assembly to the main line. The
researchers conducted trial tact time and found an increase of line efficiency and
productivity with the record of the highest value of 78 % and 78.64% respectively.
Although there is an increase, the researchers saw during tact time the number of man
power was not being utilized. There is a presence of waiting time due to unequal
distribution of workload.
By analyzing again the existing layout, the researchers reconfigured the Straight
Line into a U-Shaped Type to determine the level of productivity, researchers conducted
trial tact time for the third time and found an increase of line efficiency and productivity
with the record of the highest value of 85% and 84.61% respectively.
93
Through comprehensive study, the researchers identify the causes of low

productivity and line efficiency and eliminate it during the process. The productivity and
line efficiency was increased from an initial of 77% and 76.88% to of 85% and 84.61%.
Using the proposed method, the workload was equalizing among assemblers. This
study will help the Packaging Department in increasing its productivity and eliminating
unwanted wastes and improving its current layout. With the help of this study, the
Packaging Department was able to increase its productivity and line balance using
different methodologies which industrial engineering offers.
Conclusion
From the result of the analysts of the operation in Mechanism Assembly the
following conclusions were drawn.
1. The Mechanism Assembly need to relocate due to unorganized physical layout
which affects its productivity and line balance.
2. The company has an existing straight line layout but through this study it was
initiate that using a U-Shaped layout can equalize the workload between
workers.
3. By using the U-Shaped Type layout, the company can improve their overall
performance. The company can meet the needs and demands of the customers.
4. There is low line productivity because operators do not meet the desired
output rate due to lack of process standards.
5. Lastly, the productivity can be increase using motion and time study and
assembly line balancing.
Recommendation
In order to establish a potential layout to achieve a desired level of performance,
the following are recommended.
94
1. Implementation of online portal in Mechanism Assemblys production plan.

2. Implementation of Kanban system for parts requisition and parts pull-out.
3. Further study on the implementation of common layout between Brahms R
Model at Line 26 and Mechanism Assembly.
4. Possible manpower reduction from three to two manpower of the mechanism
assembly.
5. Continuous study about production layout for better productivity and line
balance.
The researchers would like to recommend further study on Facilities Planning and
Design and Motion and Time Study to respond to continuous improvement of the level of
productivity of companies. Also, it is in fact recommended to use this research study as a
material reference for future researchers.
SUPPORTING DOCUMENTS
95
96
97
98
99
100
CERTIFICATES
101
102
103
104

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Relocation of Mechanism Assembly and Work Cell Modification: Approach for

Productivity Improvement of Packaging Department at Epson Precision Philippines

An Undergraduate Research Paper Presented to the Faculty of the

Epson brand is established.

Year 1998, Epson Representative Office (EPRO) was upgraded to a full-fledged

Year 2008, Celebrated 10 years of exceeding customer expectations in the

SEC MANGEMENT PHILOSOPHY

performance. The company is located at LIMA Technology Center, Lipa, province of

STATEMENT OF THE PROBLEM

1. What is the existing layout in terms of:

Modification: Approach for

SCOPE, LIMITATION AND DELIMITATION OF THE STUDY

This type of assembly line typically have better

SIGNIFICANCE OF THE STUDY

The process of deciding how to assign tasks to workstations is referred to as line

Facilities Planning and Design

U- SHAPED TYPE LAYOUT

Jewel group (1989), conducted a study at Francisco Motors Corporation, subject

efficiency, minimization of the production time, and maximization of the production

The study made by Yerasi (2011) addresses the productivity improvement of a

The study of Marinay et al., Productivity and Efficiency Improvement through

A study at Francisco Motors Corporation by Jewel group in which the subject of

RESEARCH TOOLS AND INSTRUMENTS

RESPONDENTS OF THE STUDY

DATA GATHERING PROCEDURE

The formulas used were:

Max. Tact time * No. of manpower

Output x Standard time

Actual manpower x Actual working hours

Workers Daily Regular Work Time Schedule

Figure 3.A and Figure 3.B (Holder Shaft)

Figure 4 Box Illustration

(Figures 5 a, b and c) Initial Condition at EPPI Packaging Section

December 10, 2013

December 11, 2013

December 12, 2013

December 16, 2013

December 17, 2013

December 18, 2013

December 19, 2013

Table 1. Summary of the Percentages of Line Balance and Line Productivity in

Figure 11. Area for the Plan

Figure 12-1(Straight Line) Front View

Figure 12-2(Straight Line) Back View

Figure 12-3(Straight Line) Side View 1-1

Figure 12-4(Straight Line) Side View 1-2

Figure 12-5(Straight Line) Top View

Figure 12-6(Straight Line) Isometric View

Figure 13. Implemented Straight Line Layout

January 13, 2014

January 14, 2014

January 15, 2014

January 16, 2014

January 17, 2014

January 21, 2014

January 22, 2014

January 23, 2014

January 27, 2014

January 28, 2014

Table 2. Summary of the Percentages of Line Balance and Line Productivity in

After relocating the Mechanism Assembly the computed values resulted to an

Figure 14-1 (U-Type) Front View

Figure 14-2 (U-Type) BackView

Figure 14-3 (U-Type) Side View 1-1