ABSEN MULTI PIECE FLOW FOR SERVICING

& REPAIRING LED MODULES

Date: 21-Oct-2019

By Nidal Alsayyed

ABSEN PROPRIETARY and CONFIDENTIAL

Absen Confidential & Proprietary
ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
Introduction
Chinese entry into US Market created a severe competition in the LED industry. LED display (big screen wall)
were offered at 20% lower prices and the delivery time was only 6 weeks whereas US manufactures were
offering the same products at 8-10 weeks delivery time. These LED walls has different applications (indoor,
outdoor, rental, Sport stadium, Retail store, billboard, street signs, conference and convention centers)

In order to control the cost and lead time of the incoming repair & service orders from customers, we need
to analyze, verify, validates, and develops an simulation (i.e. ARENA) model to reach an optimized solution
for the handling, and assignment of repair tasks to the Service Repair Technician (SRC) and Service Support
Engineers(SSE).

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ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
Objective
With the introduction of Multi piece flow which is described as an ideal state of efficient operations, where
batch sizes and RMA requests are directed to the right manpower in more efficient manner. It is the aim of
the project to improve, quality of Repair, processing times and as a result more efficient changeover times.

Following are the benefits

• Improve the lead time of complete RMA process.

• Improve the incoming inspection method.
• Improve TAT (Turn around time) of service repairs.
• Improve the quality method of repaired modules.
• Reduce inventory.
• To increase the productivity of manpower and its cost savings.
• Improve the packaging design of LED boxes to reduce damages.
• Optimization of the RMA process to increase the revenue in service & repairs. 3
ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
Introduction

RMA Process: A return merchandise authorization (RMA), return authorization (RA) or return goods
authorization (RGA) is a part of the process of returning a product to receive a refund, replacement, or repair
during or outside the product’s warranty period.

RMA RMA
YTD 2019
Tickets Repairs RMA 0 42 47 0 50
Inspection 0 0
Waiting Quote/PO 42 1252 0 20 40 60 80 100 120 140 160
Inspection Waiting Quote/PO Open RMA Arrival Waiting Parts In Repair Factory Repair
Open RMA Arrival 47 1
Waiting Parts 0 0
In Repair 50 1336 0
Factory Repair 1 0 RMA 0 1252 1 1336
Complete 933 28769
Cancelled 66 16 Inspection
0 Waiting500
Quote/PO Open
1000RMA Arrival1500
Waiting Parts2000In Repair Factory Repair 3000
2500

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ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
RMA flow chart.
RMA Receive

RMA RMA Request Form RMA Request Form RMA Incoming

Start Received Inspection
Requestor sent to Requestor
Warranty & Finance

No Send quote Yes Quote Sent to Finance Send Invoice and Print Work Order &
Warranty to client to Invoice can be Payment Payment
Place in Que for
approve Generated Method to Client Received
Repair

Yes No
Return material back
to the customer
CoffeeRepair
Mug & QC

RMA Shipped Back to

Repair, QC & Package Customer, Provide Finish
Tracking No
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ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
TAT of RMA process flow: Existing

RMA 10 Days RMA Incoming 12 Days Print Work Order & 14 Days
Place in Que for Repair, QC & Package
Requestor Inspection
Repair

Total TAT from RMA request to QC = 36 Days

Below table shows the employees engagement in each process.

Employees engaged at critical activities

RMA work RMA Follow Up/
RMA RMA RMA
Employee RMA Inspection Order / repair RMA Repair Return for Repair / RMA Audit
ADMIN/FINANCE QC/Packaging shipping/Tracking
Flow Complaint
Worker 1 √ - - - √ - - -
Worker 2 - √ - - - - - -
Worker 3 - - √ - - - √ -
Worker 4A,4B,4C,4D - - - √ - - - -
Worker 5 - - - - - √ - -
Worker 6 - - - - - - - √
Helper 1 √ - - - - - - -
Repair & QC

Helper 2 - - - - - √ - -
Helper 3 - - - - - - √ -

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ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
RMA Ticket Volume
Type Prior Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Bench mark 0 2800 2800 3000 3000 2800 2800 3000 3000 3000 3000 3000 3000 35200
New 0 3313 3127 3917 1741 3246 2807 2167 2445 1998 2750 2750 2750 33011
Open 5935 7280 6843 5726 4089 5148 5737 2550 2631 2826 2567 2317 2067 2826
Closed 0 1968 3564 5034 3378 2187 2218 5354 2364 1803 3000 3000 3000 36870

8000
12000
7000
Closed
10000
RMA Ticket Volume

RMA Ticket Volume

6000
Open
8000 5000
Bench mark
6000 4000 New
Open
4000 3000 Closed

2000 2000

1000
0
Feb

Apr

Aug
Sep

Dec
Oct
Nov
Jan

May
Jun
Mar

Jul
Prior

0
Prior Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
Input data.
Repair Parts Top Module failures
Total Annual Repaired Top Module failures %
Sl.No. Part Percentage
Quantity Pixel Failure
1 Connector 2 0.0% Damaged pixel
2 Controller 26 0.1% Bad Pixel 60% of Module Failures
3 Data Cable 194 0.5% Dead pixel
4 Hub card 60 0.2% LED Broken/Bad LED
5 Mechanics 307 0.8%
6 Module 35812 97.1% This table shows the top module failures
7 Power box 205 0.6%
8 Power cable 4 0.0%
9 Processor 62 0.2% Total Annual Repaired Quantity
10 PSU 19 0.1% Connector
Controller
11 Receiving card 86 0.2% Data Cable
12 Sender Card 14 0.0% Hub card

13 Tile 79 0.2% Mechanics

Module
Total 36870 Power box
Power cable
Around 97% of annual repairs are from module group. Procesor
PSU

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ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
Repair Technician Time Log Analysis :Existing

Repair Technician Time Log Analysis

Est. Repairs per hours
Month Hours spent on Service No. of Persons Hours per person Closed
Existing
Jan 833 5 166.6 1968 2.36
Feb 897 5 179.4 3564 3.97
Mar 1294.5 7 184.9 5034 3.89
Apr 773 4 193.3 3378 4.37
May 668 5 133.6 2187 3.27
Jun 816 5 163.2 2218 2.72
Jul 1477 11 134.3 5354 3.62
Aug 988 8 123.5 2364 2.39
Sep 554 7 79.1 1803 3.25
Oct 925 7 132.1 3000 3.24
Nov 925 7 132.1 3000 3.24
Dec 925 7 132.1 3000 3.24
Total Hours 11075.5 Hours Average person Average Hours 36870 Pieces Average
@25$ per hour 221510 USD 6.5 146.19 3072.5 Pieces 3.30 Pieces per hour

• Considering average of 6.5 persons working at 8 hours a day for 26 day a month.
• Repair person engagement = (11075.5/ (6.5x8x26)) = 8 hours a days
• Repairs persons are 100% engaged in there work with out put of 3.3 pieces per hour 9
ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
Present Layout.

• In present condition two repairs rooms are available to carryout the repair activities.
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ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
Proposed Layout: Introduction of parallel U-shaped assembly line system in repairs

• In present condition two repairs rooms are available to carryout the repair activities.
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ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
Proposed Layout: Introduction of parallel U-shaped assembly line system in repairs

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ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
Parallel U-shaped assembly line system
Flexibility is one of the most crucial criteria of modern manufacturing systems to satisfy customized demands in
a cost-effective manner. U-shaped lines (or U-lines shortly) do not only provide the flexibility and efficiency of a
proper line design but also increase functionality of workers on the line.

Two U-shaped lines are located in parallel to each other to establish an assembly environment where operators
are multi-skilled and located between two adjacent lines, being able to handle tasks on both of the lines.

Advantages.

Flexibility
Increase functionality of workers
Multi skilled workers are used effectively
Workers can handle multiple tasks
Compact
Increased communication
Facilitate teamwork
Minimize material handling 13
ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
Parallel U-shaped assembly line system in repairs

Multi line
station LINE I (Front)

W1,1 W1,2

LINE I{ (Front)

W2,2
W2,3,1

Crossover
station W3,2

LINE II (Back)

W4,1 W4,2
Multi line
station LINE I (Back)

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ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
Arena simulation concept model

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ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
TAT of RMA process flow: Existing

RMA 10 Days RMA Incoming 12 Days Print Work Order & 14 Days
Requestor Inspection Place in Que for Repair, QC & Package Exiting TAT time
Repair =36 days

8 Days 11 Days 11 Days Proposed TAT time

= 30 days

Create the standard work Create the standard work 14

in each process conduct in each process conduct Introduction of parallel 12
event in Value stream event in Value stream U-shaped assembly line 10

mapping to improve the mapping to improve the system in repairs 8

6
exiting activities exiting activities Series1
4
Series2
2
0
Overall improvement in process = 16.66% RMA
Requestor
RMA
Incoming
Print Work
Order &
Repair, QC
& Package
Inspection Place in
Que for
Repair

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ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
Packaging improvement
The packages designed should withstand the following test conditions in
order to avoid the damages

• Handling drop
• Shipping drop
• Random (Transportation) Vibration
• Mechanical Vibration & Shock
1. Mechanical damage (strain, shearing)
Examples: Capacitor leads break over time, bolts break under load

2. Electrical connection damage

Examples: Resistor breaks away from pad causing open circuit Trace breaks on surface or inner layer of
board Solder joints, internal to potted component, fail
• Improve the design of packaging and by passing the given test criteria's the damages will reduce by
70%.
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ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
Repair Technician Time Log Analysis :Proposed
Comparison of Repair Technician Time Log Analysis 4.5
4
Hours spent on Proposed
No. of Benchmark Benchmark Existing 3.5
Month Service Pieces /
Persons Excising Proposed Pieces / hour 3
Existing hour 2.5 Existing Pieces /
hour
Jan 833 5 2800 3361.3 2 Proposed Pieces /
Feb 897 5 2800 3361.3 1.5 hour

Mar 1294.5 7 3000 3601.4 1

Apr 773 4 3000 3601.4 0.5

0
May 668 5 2800 3361.3 1 2 3 4 5 6 7 8 9 10 11 12 13

Jun 816 5 2800 3361.3 4000

3.3 3.96
Jul 1477 11 3000 3601.4 3500

Aug 988 8 3000 3601.4 3000

Sep 554 7 3000 3601.4 2500

Benchmark Exising
Oct 925 7 3000 3601.4 2000
Benchmark
Nov 925 7 3000 3601.4 1500 Proposed
1000
Dec 925 7 3000 3601.4
500
Average 11075.5 Hours 6.5 Persons 35200 Pieces 42257 Pieces 3.30 3.96
0
1 3 5 7 9 11

• Considering average of 6.5 persons working at 8 hours a day for 26 day a month.
• With the same existing repair persons additional 7000 pieces can be repaired in same time line.
• Repairs persons are 100% engaged in there work with out put of 3.96 pieces per hour 18
ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
Cost of Employee in repairs 45000
40000
Average repairs Qty/Month Qty/Year 35000
30000 In ABSEN - USA
In ABSEN - USA 2933 35200 25000
20000 With proposed
With proposed simulation 3521 42257 15000
simulation

10000

The percentage increase in repairs = ((3521-2933)/3521) x 100 5000

0
= 16.7 % Qty/Month Qty/Year

Avg. Floor Time Days

Type Avg. Floor Time Days
As per US ABSEN 36
36
From simulation results 30 35
34
33

•
32
CTC to company per month = 221500 / 12 = 18458 $ 31
Avg. Floor Time Days

30
29
• With the decrease in lead time by 16.7 % . The same numbers of 28
27
repairs will be out in 10 months. As per US ABSEN From simulation
results

• Manpower productivity = [(12-10)/12] x 100 = 16.7 %

• Cost saving in a Year = 221500-184583= 36916$. 19

ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
Cost comparison & proposed Savings
Revenue
Months Warranty % Existing Proposed
12 ( one Year) 51 1013 KUSD 1216 KUSD
Used Interpolation method 268 KUSD
Money spent on Repairs
Warranty Warranty % Existing Proposed
Under warranty 49 This savings is considered only from TAT reduction
221.5 KUSD in repairs from 14 days to 1 days
Non Warranty 51

PACKAGES
Months Damage % in packaging Pieces damages Existing Proposed
12 ( one Year) 2 737.4 Pieces 40.56 K USD 12.17 KUSD
With better packaging Damages can be reduced to 70%

Total money saved in Repair using parallel U-shaped

assembly line
Warranty Improvement % Savings
Sales Revenue 16.66% 203.00 K USD
CTC savings 16.66% 37.00 K USD
Damage savings 70% Reduction 28.39 K USD
Total savings. 268.39 K USD 20
ABSEN MULTI PIECE FLOW FOR SERVICING & REPAIRING
RMA costing – Savings on investment cost to produce more machines
Income of RMA per Module USD USD
As per US ABSEN 21.3 30

From simulation results 26.4 25

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Benefits 15
USD
10
Benefits
5
Sl. No. Parameters Benefits
Throughput time reduction 0
As per US ABSEN From simulation results
1 Improved from 14 to 11 days
in repair
Improved from 3.3 pieces per hour to
2 Repair quantity / hour
4 pieces per hour
3 Manpower productivity 16.7 % increase in productivity
A total of 268 KUSD saving which is
Savings on investment cost to
4 equal to repair additional 7000
repair more modules
modules with the existing resource

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