Course:

TOTAL QUALITY MANAGEMENT (TQM)

Subject:

PROPOSAL TO IMPROVE PRODUCTION RATE IN A CLOTHES COMPANY

DUE TO THE DEMAND DURING SUMMER

Block:

FC-PREINGIYC08A1T(H)

Teacher:

CERVANTES CONTRERAS, NEIL

ISMAEL

Members:
Ferro Acosta, Carlos Daniel (100%)
Gonzales Lopez, Sthacy (100%)
Miranda Acosta Farés Aarón(100%)
Chacón Breña, Luis (100%)
Galvez Trejo, German Alfredo (100%)

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 2024- 1

I. Description of the organization.....................................................................................3

II. Description of the area to be analyzed.........................................................................4
II.1 General Objective:..................................................................................................... 4
II.2 Specific objectives..................................................................................................... 4
II.3 Description of the production process....................................................................... 4
III. Description of the problem..............................................................................................6
IV. Data Collection............................................................................................................. 11
IV.1 Detail of calculation of ratios...................................................................................11
IV.2 Indicators................................................................................................................ 13
IV.3 Coefficients.............................................................................................................14
IV.4 Others to be used in the model.............................................................................. 16
V. APPLICATION OF THE PDCA..................................................................................... 18
VI. Reporting of results...................................................................................................... 19
VI.1 Productivity indicators............................................................................................ 19
VI.2 Productivity indicators............................................................................................ 20
VI.3 Multifactor Productivity........................................................................................... 20
VI. 1.1 Quantification of implementation costs...............................................................21
VI.1.1.1 5S costs........................................................................................................ 21
V.1.1.2 SMED costs:.................................................................................................. 22
VII. Administrative interpretation of the solution................................................................ 23
VIII. Bibliografía................................................................................................................. 24
IX.

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 I. Description of the organization

Figure 1 : VALYA LOGO

The VALYA company is mainly dedicated to making garments specifically for women who wear oversized sizes.

Cotton rib fabric is used to make the garments.

The company was created with the objective of supplying the market of women who wear oversized sizes because

it was difficult for them to find products that feel fresh and with the right type of cut so as not to feel discomfort.

The company is located at Jr. Gamarra 756 Galería Santa Lucía Tienda 20 basement.

II. Description of the area to be analyzed.

I.1 General Objective:

Improving the production/time ratio in the cutting process is essential for meeting escalating
product demand while maintaining competitiveness in the market. By enhancing the efficiency of
this critical stage in the manufacturing process, businesses can ensure timely delivery of products
to customers, capitalize on market opportunities, and sustainably scale operations to
accommodate growing demand without compromising on quality or incurring excessive costs.
Moreover, optimizing the cutting process not only boosts productivity but also allows for better
resource allocation, reduced lead times, and improved overall operational agility, positioning the
company for long-term success and profitability in an increasingly dynamic business landscape.

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 I.2 Specific objectives:

- Calculate the average time in the cutting process.

- Identify optimization opportunities by using time study results in order to take a

decision

- Apply the PDCA methodology in order to improve the cutting production in 10%
to be able to supply the demand during summer

Analysis

For the analysis , we have the objective to describe the production phases that we are focusing on
for the confectión of clothes from the Valya enterprise and proceed to apply the methodology
mentioned before in order to take a managerial decision.

I.3 Description of the production process

According to the field research and the research of information, the cutting process begins with
weighing and measuring cloth to be cut. This process comprises three stages:

● The first stage involves accommodating the cloth on the cutting table.
● The next stage entails drawing the lines to indicate where the cloth will be cut.
● Finally, the cutting machine is prepared to cut the cloth in the subsequent process.
​ Once the cutting process is completed, the cut cloth is then distributed to the confection area.
​ Other integral parts of the clothing manufacturing process include:
● Transportation to remelt: Moving excess or unused fabric to be melted down for reuse.
● Remelt process: Melting down fabric scraps or excess material for recycling.
● Fabric collar assembly: Constructing collars for garments using fabric.
● Label placements: Affixing labels to finished garments for branding and identification
purposes.
● Blunt process: Trimming or dulling sharp edges on fabric or garments.
● Packaging process: Packaging finished garments for shipment or retail display.
● Transfer to store: Transporting packaged garments to retail locations for sale.

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- Flow Diagram: For Carbonated Beverages PET Lines

The following graphs show the operation of the process line

Figure 2: Operation diagram of the manufacturing process of basic turtleneck polo shirts

Own elaboration with company

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III. Description of the problem

There are certain unplanned peaks of demand that put the production line in a rush, most of the
time this unplanned demand are from specifics high bulk orders that represent a huge profit for
the company if successfully completed but in order to being able to respond to this the company
puts most of the resources and manufacture forces into completing this order if not its a wasted
opportunity to stablish a long lasting relationship with a client that buys in high quantities. Thats
why we need to analyse the best way to respond to this eventualities in the most cost efficient
way because there are unplanned and making a huge investment might represent a risk.

IV. Data Collection

To start, to have a correct point of view of the situatiation of the company and the process to
produce th clothes. In order to being able to solve the problem of the Line one. A guided data
collection was made. The data collection gather information for the analysis. This is quantitative
information that will be used as the basis for the calculation of indicators.
This collection of data is made by searching daga from the company directly by an interview and
being able to gather the quantitative information necessary. In order to have real data and key
aspects the involves the confection of the clothes.
The data includes production , demand , and equipment. These one variables were choosen in
order to create insights like effiency , and the time and qualitybof the production in line one.
As a next step in the analisys of data include the indicators by using the data. These ones are able
to prpvides us measures that will make us easir to understand the situation in line one of
prodution of clothes in Valya. With this indicators we will be able to create diferent strategies to
improve production in order to sastisfy the demand of clothes during summer. With this we will
make the best recommendation in order to increase the line 1 production efiency in 10%

The productivity of Valya clothes production is measured by the Overall Equipment

Effectiveness-OEE.

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This helps us to determine the average efficiency of the equipment we have during the cutting process to
understand objectly in which stage of the production we are.

From the other hand, we need to contrast this efficiency of the market with a forecast of the demand
during summer, which is the time with higher demand.

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For the analysis we are using the t-shirts' demand from middle of past year and the proyected demand of
summer in 2024.

Is:
DEMAND FOR OVERSIZE POLO SHIRT FROM JUNE 2023 TO
FEBRUARY 2024
JUNE 400
JULY 400
AUGUST 400
SEPTEMBER 425
OCTOBER 400
NOVEMBER 350
DECEMBER 400
JANUARY 430

The demand for oversize polo shirts was 400 from July to October, with the exception of September
when there was demand for 425. In the month of November it decreased to 350, and then rose again in
December to 400 and to 430 in the month of January .

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And the projected demand to the next months during summer is

PROJECTED DEMAND IN SUMMER 2024

FEBRERO 440
MARZO 440
ABRIL 450

The projected demand for the summer months of 2024 was 440 oversize polo shirts for the month of
February and March, with a slight increase in the month of April to 450 oversize polo shirts.

TOTAL TIME IN HOURS/WEEK

TOTAL PRODUCTION TIME 150
LINE 1 37,5
LINE 2 37,5
LINE 3 37,5
LINE 4 37,5

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The weekly production hours are a total of 150 hours divided into 4 production lines. Each
production line produces 37.5 hours per week.

MACHINE LINES EFFICIENCY

LINE 1 70,00%
LINE 2 80,00%
LINE 3 80,00%
LINE 4 80,00%

The 4 production lines have an efficiency of 80%, except for line number 1, which has an efficiency of
70%.

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% OEE LINES JUNE 2023-JANUARY 2024
LINE 1 70,00%
LINE 2 80%
LINE 3 80,00%
LINE 4 80,00%
AVERAGE 77,50%
GOAL 81,87%

The average efficiency taking into account the 4 production lines is 77.50%. The efficiency goal
we have is 81.87% for the 4 production lines.

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Following the previous chart, we can see that line 1 is the one with less OEE, meaning the low
efficiency in comparison to the other lines. So with these numbers, we can assure that the main problem
occurs in line 1.

Now that we know that the problem is related to line 1, we need to analyze the sub processes on it.

LINE Activity Time/Hour

Programmed Time for cutting process 7,5

Machine preparation time 0,5

Line 1 Accommodate the clothe 0,5
Running machine time 0,5
Cutting clothe time 5,5
Packaging for next line time 0,5

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 Productión in
package 20
clothes for
Format/ CAPACITY/ trasnportation to Ideal Time Speed/minute
LINE Product Clothe Week line 2 (Hours) s
Regular
T-Shirt 1 120 6 7 420
Oversize
T-shirt 1 130 6,5 7,5 450
Regular
Line 1
BLuse 1 125 6,25 7 420
Oversize
Blouse 1 150 7,5 8 480
Multicolor
Blouse 1 145 7,25 8,5 510

EFFICIENCY
Production Cost per
Branch Article Line Cost S/. ratio/week Minute S/. Cost per Hour
Regular
LIMA T-Shirt 1 15 93 5 300
Oversize 360
LIMA T-shirt 1 17,5 100,75 6
Regular
LIMA BLuse 1 15,5 96,875 5,5 330
Oversize
LIMA Blouse 1 16 116,25 6 360
Multicolor
LIMA Blouse 1 18,5 112,375 6 360

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VI.1. Detail of calculation of ratios

To analyze the productivity of the production line and identify areas for improvement, we will
calculate the following ratios based on the provided data:

1. Overall Equipment Effectiveness (OEE):

OEE is a comprehensive measure of equipment productivity that takes into account three key
factors: availability, performance, and quality.

OEE = Availability x Performance x Quality

a) Availability:

Availability represents the percentage of time the equipment is available for production
without any unplanned downtime.

Availability = (Total Production Time - Total Downtime) / Total Production Time

● Total Production Time: Calculated as 154 hours.

Working
hours/day Working days in a month Line 1 Efficiency Total time for production
7 22 80% 154

Average line efficiency: We'll use the average efficiency value of similar production
lines in the industry, which is 85%.

● Total Downtime: The sum of RD, ED, PD, and OD.

b) Performance:

Performance measures the effectiveness of equipment in terms of its speed and efficiency
relative to its designed capacity. It is calculated as follows:

Performance = (Total Production Time - Total Planned Downtime) / Total

Production Time

● Total Planned Downtime: The sum of PD and OD.

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 c) Quality:

Quality indicates the percentage of products meeting required standards without defects or
rework. The formula is:

Quality = (Total Production - Total Defective Products) / Total Production

● Total Production: Obtained from the Monthly line production volume 22

provided earlier.
● Total Defective Products: Data on defective products would be
required to calculate this ratio accurately. If available, please provide
the necessary information.
2. Productivity Ratio:

The productivity ratio measures production line efficiency in terms of the

quantity of products produced per hour of operation:

Productivity Ratio = Total Production / Total Production Time

● Total Production: Obtained from the Monthly line production volume 22

provided earlier.
● Total Production Time: Calculated earlier as 149.6 hours.

3. Cost Efficiency:

Cost Efficiency assesses the cost-effectiveness of the production process by

comparing production costs with the quantity of products produced:

Cost Efficiency = Total Cost of Production / Total Production

● Total Cost of Production: Obtained from the Cost of production of

beverages produced on line 22 table provided earlier.
● Total Production: Obtained from the Monthly line production volume 22
provided earlier.

These calculations offer insights into the performance, quality, and cost-efficiency of
the production line, aiding in identifying areas for improvement and proposing
targeted solutions.

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VI.2. Indicators

To evaluate the effectiveness and efficiency of the production line, we will examine a range of key
indicators. These metrics will offer valuable insights into the line's productivity, quality, and overall
performance. The following indicators will be taken into consideration:

1. Overall Equipment Effectiveness (OEE)

● Determine the OEE for the production line based on provided data regarding availability,
performance, and quality.
● Monitor the OEE trends over time to detect significant variations or patterns.
● Compare the actual OEE with the target OEE to assess the line's performance.
2. Downtime Analysis:
● Analyze the frequency and duration of various types of downtime, including routine
downtime (RD), equipment downtime (ED), scheduled downtime (PD), and organizational
downtime (OD).
● Calculate the total downtime and downtime percentages for each category.
● Identify the primary causes of downtime and their impact on production efficiency.
3. Production Volume:
● Compute the total production volume for the line during the specified month using the
provided data.
● Examine the production volume trends to understand the line's capacity utilization and
fluctuations.
● Compare the actual production volume with the target volume to evaluate performance.
4. Production Cost:
● Determine the total production cost for the beverages produced on the line based on the
provided cost data.
● Assess the cost per unit and the overall cost of production.
● Analyze cost trends and compare them with target costs to identify opportunities for cost
savings.
5. Quality Metrics:
● Evaluate quality metrics such as rejection rates, customer complaints, and product defects.
● Calculate quality indicators such as the percentage of non-conforming products or the
first-pass yield.
● Identify any quality issues impacting production efficiency and customer satisfaction.
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6. Efficiency of Changeovers:
● Analyze data on format changes and setup times for the line.
● Calculate the average time required for changeovers and assess their impact on production
efficiency.
● Identify opportunities to optimize changeover processes and reduce setup times.

By analyzing these indicators, we will gain a comprehensive understanding of the production line's
performance, efficiency, and areas for improvement. These insights will inform the development of
strategies and actions to optimize the line's operations and achieve better overall results.

VI.3. Coefficients

To gain a comprehensive insight into the effectiveness and performance of the production line, we
will compute several coefficients that offer a quantitative assessment of different facets of the
process. These coefficients will aid in evaluating resource utilization, production efficiency, and
other crucial factors. The following coefficients will be determined:

1. Capacity Utilization Coefficient:

● This coefficient is obtained by dividing the actual production time by the available time.
● It will enable us to gauge the extent to which the production line's capacity is being utilized
and identify opportunities for enhancing efficiency.
2. Efficiency Coefficient:
● Calculated by dividing the actual production output by the theoretical or planned production.
● This coefficient will assist in evaluating the production line's efficiency relative to its
maximum capacity.
3. Availability Coefficient:
● Determined by dividing the actual production time by the scheduled time.
● It will offer insight into the line's availability and help pinpoint any issues related to
downtime.
4. Quality Coefficient:
● Derived by dividing the accepted production quantity by the total production.
● This coefficient will facilitate the assessment of product quality and the identification of any

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 quality-related concerns.
5. Productivity Coefficient:
● Calculated by dividing the production quantity by the actual production time.
● It will provide a measure of the line's productivity and enable comparison against
predetermined targets.

By computing these coefficients, we can attain a precise and quantitative understanding of various
aspects of the production line. This will empower us to identify areas for improvement, establish
achievable objectives, and make informed decisions to optimize line performance and enhance
overall production efficiency.

IV.4 Additional Elements for Model Integration

Apart from computing coefficients and analyzing production data, there are additional measures and
considerations that will be integrated into the model to gain deeper insights into and resolve the
identified issues. These measures include:

1. Root Cause Analysis:

● Conducting an extensive examination to pinpoint the underlying causes of the production line
challenges.
● Delving into factors such as equipment functionality, maintenance protocols, workforce
effectiveness, and other pertinent aspects.
● This analysis aims to uncover the fundamental reasons behind the observed declines in
productivity and efficiency.
2. Process Optimization:
● Identifying opportunities for enhancing process efficiency to streamline operations and
minimize downtime.
● Scrutinizing the production workflow, equipment setup procedures, changeover protocols,
and other process-related elements.
● Implementing best practices and principles of lean manufacturing to enhance overall
operational efficiency.
3. Maintenance Strategy:
● Evaluating the maintenance approach for the production line equipment.
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 ● Assessing the efficacy of preventive maintenance practices, availability of spare parts, and
equipment reliability.
● Developing a comprehensive maintenance blueprint to mitigate equipment downtime and
maximize uptime.
4. Training and Skill Enhancement:
● Evaluating the proficiency and expertise of production line operators and technicians.
● Identifying areas for skill development and implementing training initiatives to augment their
capabilities.
● Focusing on aspects such as equipment operation, troubleshooting techniques, maintenance
protocols, and quality assurance.
5. Continuous Improvement:
● Cultivating a culture of ongoing improvement within the production team.
● Encouraging employee feedback, suggestions, and innovative ideas to uncover opportunities
for enhancement.
● Implementing improvement initiatives and tracking their impact on production performance.

By integrating these measures into the model, a holistic approach can be developed to address the
challenges faced by the production line and instigate positive transformations. The amalgamation of
data analysis, process optimization, maintenance strategies, skill development, and continuous
improvement endeavors will contribute to enhancing productivity, efficiency, and overall
performance of the production line.

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V. APPLICATION OF THE PDCA

We use the PDCA cycle to be able to continually improve the pole production process and thus focus on
the problems of this productivity case. For the planning part, a situational diagnosis will be generated
each day in order to understand the failure in the delay as well as a self-evaluation of them. The data
obtained from the diagnosis will be made into a reliability index and productivity indicators. On the
realization side. We will create value with the arrival of production schedules as well as aim for a
quantifiable target such as 10% production over demand and we will improve the production ratio either
by decreasing time or by creating more shirts. Based on the results, we will analyze the costs in quality
as well as analyze the index of the work.

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VI. Reporting of results

VI.1. Productivity indicators

For the calculation of the Multifactorial Productivity, it was taken into account the results
obtained from the dimensions labor, materials and equipment as well as the production history of
each month of the standard product. In the following figure, the results obtained will be
compared before and after implementation.

Labor productivity/unit
Before 0,006
After 0,0066

A moderate increase in productivity can be observed in the labor dimension from 0.00528 to
0.00584 unit/sol, which is equivalent to an improvement of 10.61%

Machine Productivity/unit
Before 0,006
After 0,0067

VI.2. Productivity indicators

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We can see that the productivity has increased by 11.6%

VI.3. Multifactor Productivity

Multifactorial productivity/unit
Before 0,0059
After 0,0067

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VI. 1.1 Quantification of implementation costs

1. SMED cost:
For the cost we are using the SMED tool , in order to focus on hiring operators and 2 machines.
This graph shows the cost of implementing the solution and to obtain the expected result of
increasing 10% the production in line 1.Within the concept of this we considered that the best
way is to hire 1 new cutting operator and buying 2 cutting machines. We consider hiring a new
operator in order to improve the production and doing it in less time. Talking about the 2 new
cuting machines it is because we witnessed that it would be probable that a machine that they are
using in the process could stop working. So in order to being able to produce without
interruption we considered that the best way would be to buy another machine to not stop the
quantity of production in line with one of the cutting processes in Valya. The cost of the operator
would be S/.1250 and the cot of the 2 cutting machines would be S/.2760,20. And other
equipment that would be a new cutting table that costs S/.2000.
The other costs of the SMED methodology would be.
Capacitation SMED
Internal communication
Fase 1 , 2 , 3 , 4 , 5
In total this would cost S/. 10720, 20

2. 5S costs:

For this project we are basing our process improvement by taking into consideration the 5S. This
proposal is based on the problem that the company is facing in order to being able to improve
their production line of clothing confection
By using this methodology the total cost of implementation would be S/. 6600
Internal communication
5S external consulting
5S implementation

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Implementation cost

SMED
ACTIVITY COST

CAPACITACIÓN SMED S/.800,00

INTERNAL COMMUNICATION S/.900,00
FASE 1 S/.600,00
FASE 2 S/.600,00
FASE 3 S/.600,00
FASE 4 S/.600,00
FASE 5 S/.600,00
2 MAQUINAS DE CORTE S/.2.760,20
1 OPERARIO DE CORTE S/.1.250,00
MESA GRANDE DE CORTE S/.2.000,00
TOTAL SMED COST S/.10.710,20

5S
ACTIVITY COST

INTERNAL COMMUNICATION S/.600,00

5S EXTERNAL CONSULTING S/.3.000,00
S1 S/.600,00
S2 S/.600,00
S3 S/.600,00
S4 S/.600,00
S5 S/.600,00

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VII. Administrative interpretation of the solution.

As the time passes Valya has proved itself as an interesting entrepreneurship on the rise being
more profitable with time, now its the time when taking the right and hard decisions comes into
place and choosing a bad one can lead to a state that could cost months to amend the mistake.
Based on the study to the problem and identifying the qualities of the company there were 2
viable option that can help Valya reach its desired potential. The application of the Smed
methodology and the 5s between these the decision was made putting a contrast the application
of this in a cost efficient way and how much we can get of that investment, apply the Smed
methodology implies a higher cost to the company as it became a lot bigger within the years but
now the most viable option will be the 5S. This investment is more reachable from the current
situation of the company an provides a solution to the current problem and also trains the
collaborator to being able to solve future problematics, As we apply the 5s and the other studies
apply we can try to predict this peaks of demand with the use of statistical data and be prepared
ahead of time when it come to get in more supplies and having a pre-ready stock in other to not
affect other Orders from others clients giving us a

- Changeover time reduction

- Minimum breakdowns
- Having the stock ready when it's needed and not being seated for days
- Having 0 delays

Once the problem is fixed and the production line stays in a constant flow and able to respond to
this eventuality we can opt for another investment in TQM in order to keep scaling the operation.

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VIII. Bibliografía

Ahmad, R. and Soberi, M., Changeover process improvement based on modified SMED method and other
process improvement tools application: an improvement project of 5-axis CNC machine operation in
advanced composite manufacturing industry, The International Journal of Advanced Manufacturing
Technology, vol. 94, pp. 433–450, 2018.

Sembiring, N. APPLYING SINGLE MINUTE EXCHANGE OF DIES (SMED) AND 5S TO REDUCE SETUP
TIME OF FILLING MACHINE AT PT. MNO [Tesis de Bachiller, President University]. Repositorio
President University, 2017.

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