Case Study - Karzai Manufacturing Production Fluctuation

Summary

- This paper will discuss the case in which a manufacturing firm known as Karzai has
an ongoing case in which the production output of their machine is inconsistent. The
company wants to know the reasons to why is this so, and for it to be solved and
optimized in order to achieve a greater production output.

Tools and techniques from methods engineering is used and strategic approach
more focused towards lean thinking is applied for this case study.

I. Introduction

Karzai Manufacturing Company is a plastic injection factory that deals with the
production of Sharp’s Tub cabinet used in their washing machine products.
Throughout the fiscal year through monthly production reports, management had
noticed that the time that production meets the deadline for Sharp’s orders are
inconsistent.

The Karzai Manufacturing Company hired Aimin, an Industrial Engineer

specializing in methods engineering to find out what is causing the fluctuation of
production and how to improve the production output so that the requirements can be
met faster and produce much better income for the company.

Aimin is now tasked to gather data, analyze and come up with the factors that
affects the fluctuation whether if it is the Machine or the Operator so that the team
can come up with recommendations and improvements.

1. Viewpoint: From the viewpoint of Aimin

2. Statement of the Problem:

The Karzai Manufacturing Company is experiencing a large fluctuation gap in

the production output. The management noticed that sometimes the production
can meet the required quota for the day, but there is also a time that the quota
were not able to achieve. For this case, the company is extending its production
hours to meet the said quota which leads to bigger expenses.
II. Causes of the Problem

The Ishikawa diagram below shows the reasons behind the fluctuation of the
production output of Karzai Manufacturing Company.

Man

o Waiting for the shift to end

– the workers are just waiting for the time of their work to end.
o Inconsistent machine operators
– operators differ in the time completion of the same tasks.

Method

o Some operations are repeated

– due to some workers forgetting that the task has already been
completed.

Machine

o Operators wait for the machine to finish

– some processes for the machine could be set to a faster time to
lessen time consumption.
o Machine breakdown
– machine with a problem could not be used immediately because of
malfunction to be fixed by the maintenance department.

MAN MACHINE METHOD

Waiting
Inconsistent
for the machine
shift
Operatorsto end
Machine operators
wait forSome
breakdown operations
the machine are repeated
to finish

Fluctuation of
Production
Output of Karzai
Manufacturing
Company

Figure 1.0 The Ishikawa Diagram of the Problem

III. Objective of the Study

 To determine the cause of fluctuation of the target outputs.

 To know the actions to be taken by the management to eradicate the
fluctuations.
 To improve the efficiency and production of the tub cabinet.
 To use the proper problem solving tools to solve the problems.

IV. Analysis of the Case

Through data gathering, Aimin managed to get enough to be able to analyze

every single step procedure of the machine and the operator. They have also
managed to gather data that shows that there is indeed a fluctuation of production
output.

Below are data that shows the fluctuation of the production taken from 2 different
days.

Figure 2. First Output Data

Figure 3.0 Second Output Data

 The team also took data regarding the step by step procedure of both machine
and operator. Below are the machine step procedures and the time it takes to
complete each step.
 Table 1.0 The Machine step procedures

Machine Actions

Totals from the Data:

Total Machine Cycle Time - 75 Seconds

Operator Retrieval - Varying from

8.2 - Fastest

13.7 - Slowest
Below are the operator procedure times.

Table 2.0 Data shows that the Operator waits for the machine to finish

Data Legend

- The first 4 actions affects the machine boot up time.

- The operator finishes his task before the machine.

V. Areas of Consideration
SWOT Analysis of Karzai Manufacturing Company

Figure 4.0 SWOT Analysis Diagram

The Figure 4 above is the SWOT analysis of the Karzai Manufacturing

Company. It stated the strengths, weaknesses, opportunities and threats of the
company. Every category has factors in which the researchers analyzed about the
company. This SWOT analysis will help the Karzai Manufacturing Company in
determining the factors affecting the company, and will serve as a basis and guide in
order to eliminate any uncertainties that may arise in the company.
 Figure 5.0 Why-why Analysis
Why? Why? Why? Why? Why?
Standard Working Procedure
The frequency ofofspraying
in termsThe spraying
operatorthe
lubricant
The cycle lubricant
retrieval
time differs.
There
oftime
every varying.
isisisunofficial.
aoperator
fluctuation
is inconsistent.
in the production.
Why-Why Analysis
VI. Alternative Courses of Action

ACA #1.0 Change the cooling settings of machine.

ACA #2.0 Improvement of Standard Working Procedure (SOP).
ACA #3.0 Shifting of operator and Quality Inspector.

Analysis of the ACA

ACA #1.0 Change the cooling settings of machine.
FACTORS ALTERNATIVE WEIGHT RATE

It would not consume much time due to 5

TIME the management’s desire for this 25%
change to be approved. (1.25)

It would not cost any expense at all. 1

COST 25%
(0.25)

It would be able to resolve the 4

IMPACT OR
company’s problem of time 40%
EFFECTIVENESS (1.60)
consumptions by the machine.

Changing the setting would be just 10% 5

EASE OF
fine, due to the management’s
IMPLEMENTATION (0.50)
approval.

Legend: 1- lowest ; 5 – highest

ACA #2.0 Improvement of Standard Working Procedure (SOP).

FACTORS ALTERNATIVE WEIGHT RATE

It would be a quick change due some 4

TIME process being slightly altered. 25%
(1.00)

It will not cost any expenses at all. 1

COST 25%
(0.25)

It would be able to work out the 5

IMPACT OR
company’s trouble in operator 40%
EFFECTIVENESS (2.00)
inconsistency.

There would be some mixed opinions 10% 3

EASE OF
by the management about changing
IMPLEMENTATION (0.30)
some work procedures.

Legend: 1- lowest ; 5 – highest

 ACA # 3.0 Shifting of operator and quality inspector.
FACTORS ALTERNATIVE WEIGHT RATE

It will take time for the scheduling and 3

TIME approval of the proposed shifting of 25%
operator and quality inspector. (0.75)

Will cost some money due to some 2

COST employees changing shifts with another 25%
employee. (0.50)

It will boost production output due to less 4

IMPACT OR
slack of the employees during working 40%
EFFECTIVENESS (1.60)
hours.

The management would approve the 10% 4

EASE OF
proposal because it would greatly benefit
IMPLEMENTATION (0.40)
the company.

Legend: 1- lowest ; 5 – highest

COMPARISON OF ALTERNATIVES

EASE OF IMPACT OR
ALTERNATIVES TIME COST TOTAL
IMPLEMENTATION EFFECTIVENESS

1. Change the cooling

settings of the 1.25 0.25 1.60 0.50 3.60
machine.

2. Improvement of
Standard Working 1.00 0.25 2.00 0.30 3.55
Procedure (SOP).

3. Shifting of operator
0.75 0.50 1.60 0.40 3.25
and Quality Inspector.

The comparison of alternatives is the result of combined thinking of the

evaluators. Several factors are considered with the appropriate weight in percentage
and corresponding rating in order to come up with the appropriate solution to the
problem. The alleged factors, weight, and rate depends on the breakdown of the
case in order to be beneficial to the organization, thus boosting the production of the
outputs of the company.
 VII. RISK CONTROL STRATEGIES

o Have a maintenance o Determine the root

check cause of the problem
o Identify other possible o Create a plan
solutions o Inform everyone
o Standardize involved in the plan

o Evaluate results o Implement the plan

o Evaluate process o Monitor the change
o Make corrections with o Adjust some other
gathered results processes

Figure 6.0 PDCA cycle

In this figure it shows us how to identify possible causes, benchmark best

practice and identify team roles to implement quick fix. It also carry out trials to prove
causes and analysis data to understand how problem occurs and identify possible
solution for them. It reviews feedback and makes corrections which results in taking
counter measures and studying there solution to verify data through training and
communication.
VIII. CONCLUSION

The study concludes that the works have long working hours which can
be a resource of demotivating for them to work and also some operations that
are performed are repeated in the company which can be less efficient this
may result in time wastage. As it can Weaknesses be seen from the threats in
the SWOT analysis they have inconsistent management, insufficient number
of employees and also less communication among employees. But the
company was able to find a solution for there Fluctuation of Production Output

By adapting three alternative courses of actions choosing the most

feasible and efficient out of three.

IX. RECOMMENDATION

After evaluating and considering those factors, the most feasible

alternative is ACA #1 – Change the cooling settings of the machine
because this will bring the best progress to the company. Increasing product
output capacity without investing in any extra product to improve the
production is the best option. Also, The quest for quality and better service to
the customer should be a continual, never – ending one. Competitors will
seek to provide better service and customers will come to expect it.
X. ACTION PLAN

ACTIVITY TIME RESPONSIBLE PERSON

HORIZON

1.
In the planning phase the company has to
looking at all perspectives while adopting
the change in the cooling setting of
machine like the cost, how much it 4 DAYS CEO / DIRECTOR
produces and if the production will meet
the quota of the day.
2.
After the planning phase it has been
identified that quota is not meet due to no DIRECTOR
official SOP in terms of spraying the 4 DAYS IMMEDIATE
lubricant which has slowed down the SUPERVISOR
production process.
3.
The company contacted WD-40 to learn DIRECTOR
more about spraying of lubricant and the IMMEDIATE
how the process goes 1 DAY SUPERVISOR
4.
After a visit to WD-40 they came learn that
it is important to verify that the appropriate
volume and type of lubricant are being DIRECTOR
used. An also ensure that the lubricant IMMEDIATE
stays in place and is of the correct SUPERVISOR
viscosity
5.
This
process/implementation can be done by DIRECTOR
undergoing employees through training 2 DAYS IMMEDIATE
and also modifying the number of working SUPERVISOR
hours.
6.
The final process that Karzai
Manufacturing has undertaken is adopting FOR THE
of the new machine. It may be expensive WHOLE DIRECTOR
to implement and add to the company at OPERATION IMMEDIATE
first but it will help them save money in the PERIOD SUPERVISOR
future. It will reduce the costs of operation
because their ability to adapt to changes
helps to prevent defective products as well
as wasted time and resources.
XI. Appendices: Case Text

This study was conducted in Karzai Manufacturing Company which is a plastic

injection factory that deals with the production of Sharp’s Tub cabinet used in their
washing machine products. It was stated that the Karzai has problems with meeting
the production deadlines so the company hired an IE specialist in methods
engineering to improve their production output so that the requirement could be met
faster that will produce much better income for the company.

In this study, Karzai have used 5 methods to help identify the causes of the
problem and implement solutions, from these methods are the Ishikawa diagram
which helps to identify all the internal and external threats and problems that the
company are facing and what can be the best alternative. Then the why-why analysis
which helps to determine the root cause of the problem and helps answer the
question of why the problem occurred in the first place. Next methods used is the
SWOT analysis which gives insight of different threats and opportunities that could
be encounter and the ACA which finds a long-term best solution in terms of method,
cost, time, and people. Last is the PDCA which is an iterative, four-stage approach
for continually improving processes, products or services, and for resolving problems.

It is safe to say that after the company has implemented its action plan for the
organization for a long-term solution in which it will not only be effective for the
production and cycle time, but to also reduce the cost and waste of resources.