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Procedia Manufacturing 17 (2018) 640–646

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28th International Conference on Flexible Automation and Intelligent Manufacturing
28th International ConferenceJune
(FAIM2018), on Flexible Automation
11-14, 2018, and OH,
Columbus, Intelligent
USA Manufacturing
(FAIM2018), June 11-14, 2018, Columbus, OH, USA
Analysis and Improvement of Processes in the Jewelry Industry
Analysis and Improvement of Processes
Manufacturing Engineering Society International
1
in
Conference
the Jewelry Industry
1 2017, MESIC12017, 28-30 June
Hugo Tiago Rocha1, Luís Pinto Ferreira1, F. J. G. Silva1
2017, Vigo
Hugo Tiago Rocha (Pontevedra),
, Luís Spain
Pinto Ferreira , F. J. G. Silva
1
ISEP – School of Engineering, Polytechnic of Porto, R. Dr. Antº Bernardino de Almeida, 431, 4200-072 Porto, PORTUGAL

Costing models for capacity optimization in Industry 4.0: Trade-off

1
ISEP – School of Engineering, Polytechnic of Porto, R. Dr. Antº Bernardino de Almeida, 431, 4200-072 Porto, PORTUGAL

Abstract
Abstract
between used capacity and operational efficiency
In an increasingly competitive and flexible market, the continuous improvement of processes is essential to the enhancement of
effectiveness and efficiency.
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maximization, contributing also for organization’s profitability and value.
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contributions
Keywords: Processfrom both the practical
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1. Introduction
value. The trade-off capacity maximization vs operational efficiency is highlighted and it is shown that capacity
1. Introduction
optimization might hide operational inefficiency.
In an
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Authors. Published and B.V.
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Introduction

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of idle Authors. Published by Elsevier information
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This is an open access article under CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/)
in several
Conference. ways: tons of production, available hours of manufacturing, etc. The management of the idle capacity
Peer-review under responsibility of the scientific committee of the 28th Flexible Automation and Intelligent Manufacturing (FAIM2018)
* Paulo Afonso.
Conference. Tel.: +351 253 510 761; fax: +351 253 604 741
E-mail address: psafonso@dps.uminho.pt

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(FAIM2018) Conference.
10.1016/j.promfg.2018.10.110
 Hugo Tiago Rocha et al. / Procedia Manufacturing 17 (2018) 640–646 641
2 Author name / Procedia Manufacturing 00 (2018) 000–000

of different types of waste [3, 4, 5].

This work was developed in industrial environment, at Flamingo S.A., a company in the jewelry industry located
in Gondomar, Portugal. The main purpose of the study was to improve the management process and production
control, which is responsible for the performance management of the productive system. During the development of
the work at hand, various tools were applied to analyze and improve the processes, namely those inherent to the
Lean Manufacturing philosophy, more specifically: the KANBAN system, 5S, KAIZEN, and visual management. In
order to support visual management, a beta version of MES software (manufacturing-execution-system) was
implemented with the purpose of analyzing the feasibility of the full implementation of this software in the
organization’s industrial sector. The structure of the article is divided into five sections: the first of these consists of
the introduction; section 2 presents a literature review of the different studies undertaken in the field of process
analysis and improvement; section 3 deals with the methodology used in the study execution; section 4 describes the
work developed at the company and, finally, section 5 presents the final conclusions.

2. Literature Review

In a worldwide context, organizations are confronted with situations where, if improvement in competitiveness is
the issue, there are no margins for errors, waste and, least of all, process stagnation [1]. Specialist literature presents
various studies in the field of Process Analysis and Improvement, in which different tools were applied with the
purpose of constantly improving distinct processes. The successful utilization of process analysis and improvement
tools is dissociated from their area of application, so that their implementation can be extended to many varied
sectors. An example of a study dealing with visual management with a view to managing resources took place in a
laboratory of advanced manufacture in the technological center at the University of Stellenbosch. It concluded that
the effects of time, cost, quality and waste can be positively influenced by the use of visual management tools [6]. In
another study, in the cardboard boxes industry, the implementation of tools such as 5S and visual management
generated an average decrease of 47% in Setup time and resulted in greater staff involvement, so that the workers
themselves proposed improvement actions [7].
In the automotive sector, there are countless studies which deal with the objective of improving the performance
of several processes [8,9,10,11, 12]. In one of the studies undertaken, whose purpose it was to carry out
improvements on an assembly line producing steel cables used for car window elevators, the application of several
Lean Manufacturing techniques enabled improving the efficiency of the process, which generated an increase of
41% in the productivity of the assembly line [13]. In an additional study of an automobile sector assembly process, a
new loop layout was implemented for the work stations in order to improve the process. It was concluded that, in
this particular case, productivity could be improved by 10% [14]. However, making changes to processes is not
always necessary. In a study undertaken by means of questionnaires presented to workers, the improvement of
ergonomically enhanced conditions to perform operations resulted in less absenteeism and, consequently, to the
greater productivity and quality of the manufactured goods [15]. Furthermore, in many other studies, one has seen
an increase in productivity/quality of services and work conditions. This is the case, for example, of: the hospital
health sector[16,17,18], a zoo [19], the aerospace industry [20,21], the metalworking industry [9,22,23], amongst
others.
Regardless of the area of activity, it is the administration’s commitment and role of leadership in the introduction
of tools to improve processes which constitute key factors in the success of implementation. This is particularly true
of small and medium-sized companies [24,25,26]. In order for companies to gain a competitive edge, a special effort
must be made to eliminate failures in communication across all of the company’s sectors [27]. To this end, software
must be adopted to support the entire production sector and to provide all of the information which pertains to the
processes being analyzed. This will make it possible to rapidly update the production plan in order to respond to new
requirements [28].

3. Methodology

The research methodology adopted to carry out this study was initiated with a review of literature. This was
undertaken by means of scientific articles which deal with the analysis and improvement of processes, as well as
642 Hugo Tiago Rocha et al. / Procedia Manufacturing 17 (2018) 640–646
Author name / Procedia Manufacturing 00 (2018) 000–000 3

Lean Manufacturing philosophy and MES software, with a view to applying these to the real-case scenario of the
production processes developed at the Flamingo, S.A. company. One subsequently identified the main problems
pertaining to the processes in question in order to draw up a plan of improvements. Lastly, one sought to implement
several solutions, which would allow the company to obtain significant improvements in the management process,
as well as in production control, by eliminating the previously identified problems.

4. Analysis and improvement of the management process and production control

The work at hand was undertaken in the areas of management and production control of the Flamingo, S.A.
industrial plant, where different tasks are carried out. Here, one accompanied the entire production process, from
raw material adjustments to the assembly of the various components which constitute the article, ranging from a
mainstream product, for example a bracelet, to high jewelry items such as candlesticks or a Menorah. Figure 1
presents a flowchart of the current development process for a new order. The purpose here is to demonstrate the
management process, as well as the production control, from the order receiving moment to its delivery to the
customer.

Fig 1. Flowchart of the current development process for a new order.

 Hugo Tiago Rocha et al. / Procedia Manufacturing 17 (2018) 640–646 643
4 Author name / Procedia Manufacturing 00 (2018) 000–000

4.1. Identification of problems and solutions implemented

Beginning with the top of the flowchart in Figure 1, a problem immediately emerges in the first activity: the
service order (SO) is created by a sales department staff member and not by the head of production. This error is
translated into a SO which contains no technical information whatsoever regarding the article in question. In
addition to the problems relating to information transmitted to the production sector, one also identified great
difficulty in the management process, as well as in that of the production control of a specific order (see Table 1).
Obtaining simple information of the general status of a production request is usually rather difficult. This is because
there is no practice of controlling the process across its intermediate stages and even less of scheduling different
orders for the diverse sectors. Different tools can, however, be used to support knowledge of the current state of an
order so that one is able to control and manage it throughout all of the steps involved in its production. Customer
satisfaction will always be the ultimate goal of a company wishing to differentiate itself from its competitors. At a
time when technological developments are the order of the day, and competitors are able to produce identical
products, there is a need for companies to stand out from the rest of their competitors through services which offer
additional value when compared to the market. Yet, the implementation of tools to support a company’s
development process requires a change in corporate culture and strategy, which is often counter-intuitive to people’s
habitual practices [4].

Table 1. Identification of problems/solutions for the processes analyzed.

Process Developed Problems Proposal/Solution
Inexistence of tools to aid in the Adoption of Lean Manufacturing tools
Management and
production management and control Implementation of MES (Manufacturing Execution System) software
Control of Production
process to support production

4.2. Proposal for the adoption of lean manufacturing tools

Lean Manufacturing comprises a philosophy of operational management which focuses on the elimination of
various types of waste (surplus production, faulty products, unnecessary stock, unnecessary handling, unnecessary
transportation, excessive waiting times, unnecessary displacements and the under-utilization of employees) by
resorting to different tools [29]. Several methodologies were proposed in this study, the purpose of which was to
improve quality and production times through the elimination of waste:

• Pull System – Since the company’s context of production implies using different types of raw materials (RMs)
(gold, silver and copper), with a very high weight cost which fluctuates daily, keeping a stock of these is not
advisable. As a result, the company has been implementing a Pull system in its philosophy of working with
customers so that many of the articles are produced only when there are orders. Thus, in the case of articles
whose are of a more seasonal nature, a sequential Pull system was immediately implemented. This means that
production is only initiated once an order has been placed and only the required quantities are manufactured.
For other articles which are ordered more frequently, the company resorts to a mixed Pull system. In this case,
goods are produced only when they are ordered but an additional number of these items are manufactured to
serve as back up stock for forthcoming orders, thus making it possible to address customer demand more
quickly.

• Kanban System and Visual Management – In addition to the above, it was also considered necessary to
implement a new modus operandi, which would allow for the reception of orders from the company’s
commercial department and subsequently filter/plan how and when these orders should be translated into
service orders to be sent to the various departments. The Kanban production board (see Figure 2) constitutes a
useful tool for these types of situations. In this case, orders are received and then recorded on cards; these are
then ordered according to priority on a planning board. Different sticky notes are then posted on this board, so
that the SO are transformed into Kanban cards, which are specifically designed for this tool (see Figure 3).
Besides these, there are also color magnets, which provide information as to the card’s priority status: red for a
priority order, yellow for a normal order and green for stock.
644 Author
Hugo nameRocha
Tiago / Procedia
et al. Manufacturing 00 (2018) 000–000
/ Procedia Manufacturing 17 (2018) 640–646 5

Fig 2. Kanban board for implemented production.

Fig. 3. Designed Kanban card.

• 5S – Regarding this tool, the 5S implementation process was put into practice in the preparation of the raw
material sector. Initially, tools (in this case, gauges) were scattered across the factory floor; they are now
grouped together on a shelf and can be found easily by referring to the color code designed for this purpose
and, above all, since the work area is uncluttered (see Figure 4). As a result of this implementation, the entire
industrial environment improved significantly. This has, in turn, led to a greater sense of wellbeing amongst
operators, who are now less concerned about finding the tools required because these are easily accessed. The
implementation of 5S has thus contributed very positively to a reduction in wasted time.

Fig. 4. Implementation of the 5S methodology in the preparation of the raw material sector.
 Hugo Tiago Rocha et al. / Procedia Manufacturing 17 (2018) 640–646 645
6 Author name / Procedia Manufacturing 00 (2018) 000–000

4.3. Proposal for the implementation of MES software to support production

The MES software implemented in this study was Flow Manufacturing [30], which was designed by the
Portuguese company, Flowtech. It was chosen due to its intuitive interface: besides a Front Office, which enables
data collection from the factory floor, it also provides a comprehensive Back Office to ensure the full traceability of
the production data. There is, thus, a program in place which is capable of executing the visual management of the
entire production process in real time. Supported by software, this Lean Manufacturing visual management tool is
easily accessed by any worker, head of department or even by administration, so that the current status of each
process can be identified.

5. Results analysis
The ultimate objective of this study was to improve the company’s process of management and control of
production. Ensuing from the work developed, with the subsequent adoption of Lean Manufacturing tools and the
implementation of MES software to support production, the company in question was able to achieve the following
gains: greater productive organization; standardization of procedures; providing the workers with good practices;
giving the head of production control over the entire production process; and generating useful reports to aid in
decision-making. Table 2 presents the implementation states for each of the solutions proposed and described above.

Table 2. Implementation states for the different solutions.

Proposal/Solution Implementation state
• A Kanban board implemented to support production
• Visual management implemented through the adoption of Flow Manufacturing software in Front Office
Adoption of Lean • Standardization of some procedures, namely those required to proceed with the different records used
Manufacturing tools in the Flow Manufacturing software
• The 5S philosophy was implemented in the preparation of the raw material sector, in order to encourage
administration to adopt the same system across the entire factory
Implementation of MES • A trial version of the different models and types of Menorah items was implemented
software to support
production

6. Discussion and conclusions

Organizations are currently driven by market demands which are extremely competitive in nature. In order to
maintain and enhance their competitiveness, organizations must improve and optimize the efficiency of their
processes [27]. In the context of this study, the organization in question was provided with several tools which will
motivate production to operate in a leaner manner. Two of these tools have proved to contribute greatly to this aim:
• The implementation of Lean Manufacturing tools, namely the Kanban board of production, the standardization
of procedures and the implementation of the 5S philosophy, all of which address the objective of improving the
production organization;
• MES software was successfully implemented, in order to support the production of the Menorah range items.
It is thus concluded that all of the tools implemented in this study have boosted the organization’s
competitiveness, which is underpinned by organization and processes standardization. Thus, it is intended
encouraging the implementation of the aforementioned tools to all sectors in the company, in particular the Lean
Thinking philosophy and recording habits that will bring new opportunities to the company with a view to reducing
wasted times and promote continuous improvement, increasing as well the customers' satisfaction.

Acknowledgements

The Authors also thank the cooperation and financial support provided by LAETA/CETRIB/INEGI Research
Center, as well as FLAD – Fundação Luso-Americana para o Desenvolvimento (Proj. 116/2018).
646 Hugo Tiago Rocha et al. / Procedia Manufacturing 17 (2018) 640–646
Author name / Procedia Manufacturing 00 (2018) 000–000 7

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