Trang 1 TECHNOLOGY AND EDUCATIONMINISTRY OF EDUCATION AND TRAININGHO CHI MINH CITY UNIVERSITY OF S K L 0 0 8 6 9 1LECTURER: M.E NGUYEN THI MAI TRAM STUDENT: NGUYEN NGOC TOANGRADUATION D
MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION GRADUATION DISSERTATION INDUSTRIAL MANAGEMENT APPLYING LEAN TOOLS TO IDENTIFY AND ELIMINATE WASTE IN THE STONE PRODUCTION PROCESS AT 350T/H STONE CRUSHER AT DONG PHONG CO., LTD LECTURER: M.E NGUYEN THI MAI TRAM STUDENT: NGUYEN NGOC TOAN SKL 008691 Ho Chi Minh City, May 2022 MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY OF ECONOMICS GRADUATE DISSERTATION TOPIC APPLYING LEAN TOOLS TO IDENTIFY AND ELIMINATE WASTE IN THE STONE PRODUCTION PROCESS AT 350T/H STONE CRUSHER AT DONG PHONG CO., LTD Student : Nguyen Ngoc Toan Student ID : 18124237 Course : 2018 Major : Industrial Management Instructor : M.E Nguyen Thi Mai Tram Ho Chi Minh City, May, 2022 COMMENTS OF INSTRUCTOR Ho Chi Minh City,… May, 2022 Instructor i COMMENTS OF THE COMMITTEE MEMBERS Ho Chi Minh City, ….August, 2020 Members of the committee i ACKNOWLEDGEMENT This study would have not been possible without the support from many individuals Foremost, I would like to express my deepest appreciation to my internship report advisor, Ms Nguyen Thi Mai Tram, for her guidance and invaluable insights she provided throughout the duration of the internship report I am really thankful for her firm commitment to keeping in touch despite her busy schedule, and also for all the time spent during the discussion and video conference on a weekly basis Besides, I would like to express my sincere thanks to the teaching staff of the Ho Chi Minh City University of Technology and Education for imparting valuable background knowledge and experiences during the past years so that I can gain an important knowledge base to be able to successfully complete the internship position at the company In addition, I would like to thank Dong Phong Co., Ltd for creating favorable conditions for me to practice at the company Thanks to the members of the production department for receiving and creating the best conditions for me to cultivate more useful knowledge, practical experience and complete the report and help me better understand the company’s production process, methods, and techniques in production During the time writing this graduate dissertation, it is difficult to avoid shortcomings I hope to receive remarks and suggestions from teachers and readers to improve the report and be able to base it on to develop for the graduate thesis Finally, I would like to express my sincere gratitude to my parents who have devoted their lives to helping me complete this graduation thesis Sincere thanks! i LIST OF ABBREVIATIONS Abbreviations Explanation 5S Sort, Set In Order, Shine Standardization, Sustain ANFO Aluminium Nitrate and fuel oil C/T Cycle Time CSVSM Current-state Value Stream Map FIFO First In First Out FSVSM Value Stream Mapping FY Fiscal Year HC Headcount INVA Non Value-add but necessary JIT Just In Time LBL Line Balance Loss LBR Line Balance Rate LT Lead Time LTD Limited Liability Company NVAT Non Value-Added Time PCE Production Cycle Efficient PDCA Plan, Do, Check, Act PPE Personal Protected Equipment SIPOC Supliers, Input, Process, Output, Customer ii TPM Total Productive Mainternance TPS Toyota Production System UPH Unit Per Hour UPPH Unit Per Person Per Hour VAT Value-Added Time WIP Work In Process iii LIST OF FIGURES Figure 1: Price list of the products of Dong Phong Co., Ltd Figure 2: 1x2 Stone samples Figure 3: Gravel samples 10 Figure 4: Dust gravel samples 10 Figure 5: 0x4 stone samples 11 Figure 6: 4x6 stone samples 11 Figure 7: Organization structure of Dong Phong Co., Ltd 12 Figure 8: Profit after tax chart of the company (2018 – 2020) 15 Figure 1: An example of a pull system 17 Figure 2: Eight types of waste 19 Figure 3: The 5S process 20 Figure 4: An example of a VSM 21 Figure 5: Steps to implement a VSM 22 Figure 6: Developed method process steps 23 Figure 7: An example of a supermarket pull system 24 Figure 8: An example of a pacemaker process 25 Figure 1: An overview image of 3A quarry 28 Figure 2: Stone mining and production process at 3A quarry 30 Figure 3: The blasting site 31 iv Figure 4: An excavator is loading blasting stones for a dump truck 32 Figure 5: The stone crushing process at 350T/H crusher 33 Figure 6: Stone crushing hopper 34 Figure 7: Jaw Crusher 35 Figure 8: Vibrating screen 35 Figure 9: Secondary jaw crusher 36 Figure 10: Cone Crusher 37 Figure 11: Silo 37 Figure 12: Two cone crushers 38 Figure 13: Stockpiles of finished products 38 Figure 14: Storing finished stone product process in the quarry 39 Figure 15: Some of the vehicles and machines of Dong Phong Co., Ltd 40 Figure 16: Poor appearance of the maintenance workshop at quarry 3A 43 Figure 17: Air pollution at the quarry site 45 Figure 18: Truck demand comparison between FY2022 and FY2023 46 Figure 1: Pareto Chart of Stone quantity consumed (2018-2020) 48 Figure 2: SIPOC diagram of the 1x2 stone, gravel, 0x4 (processed) stone families 49 Figure 3: Stone production Current State Map at 350T/H stone crusher 52 Figure 4: The current Yamazaki chart of the process 56 Figure 5: Fishbone diagram of the problem 57 Figure 6: Future state Value Stream Map of 350T/H stone crusher process 59 Figure 7: Future Yamazumi chart of the process 62 v Figure 8: The comparison of the production lead time, PCE and LBR between current and future process 63 Figure 9: Hard savings for the company after improvement project 64 Figure 10: Fishbone diagram of the problem in maintenance store of the company 65 Figure 11: The 5S team 67 Figure 12: Categorizing machines, vehicles, tools, parts chart 69 Figure 13: Recommended Process Flow Chart for 1S Stage (Sort) 70 Figure 14: Cleaning Process flowchart in the 3S stage (Shine) 75 vi REFERENCES Womack, J P., Jones, D T., & Roos, D (1990) The Machine That Changed the World: The Story of Lean Production Harper Perennial; 1991 Womack, J P & Jones, D T Lean Thinking 2nd ed New York, NY: Free Press, Simon & Schuster, Inc.; 2003 Lonnie, Wilson (2010) How to implement Lean Manufacturing New York: McGraw- Hill, Inc Ohno, Taiichi (1988) Toyota Production System: Beyond Large-Scale Production Portland, Oregon: Productivity Press Rother, M & Shook, J (2003), Learning to See: Value-stream mapping to create Value and eliminate Muda by, The Lean Enterprise Institute Andi, R Wijaya., Kumar, R & Kumar, U (2009) Implementing Lean Principle into Mining Industry Issues and Challenges Rylander, D & Axelson, J (2013) Lean method to identify improvements for operation control at quarry sites Place of publication: Montreal, Canada DOI:10.22260/ISARC2013/0010 Jayalath, S D L D (2016) Lean strategies to minimize waste in Sri Lankan quarry industry, Thesis, University of Moratuwa, Sri Lanka Ái, L (2020, February 21) Cách phân loại để thực S1 – Sàng lọc 5S Retrieved 11/28/2021, from https://vietquality.vn/cach-phan-loai-de-thuc-hien-s1-sangloc-trong-5s/ 10 Ái, L (2020, November 4) S2 - Sắp xếp 5S cho hiệu quả? Retrieved 11/28/2021, from https://vietquality.vn/s2-sap-xep-trong-5s-sao-cho-hieu-qua/y 11 Ái, L (2020, May 14) Tất tần tật S3 – Sạch 5S, chìa khóa để thực S3 hiệu Retrieved 11/28/2021, from https://vietquality.vn/tat-tan-tat-ve-s3-sach-setrong-5s-chia-khoa-de-thuc-hien-s3-hieu-qua/ 82 12 Ái, L (2020, June 23) S4 – Săn sóc 5S bí mang lại hiệu Retrieved 11/28/2021, from https://vietquality.vn/s4-san-soc-trong-5s-va-bi-quyetmang-lai-hieu-qua/ 13 Ái, L (2020, May 14) S5 – Sẵn sàng 5S xây dựng Retrieved 11/28/2021, from https://vietquality.vn/s5-san-sang-trong-5s-la-gi-va-xaydung-nhu-the-nao/ 14 Dong phong Co., Ltd (2020) Hồ sơ công ty 15 Mariano Jiménez, Luis Romero, Manuel Dominguez, & Maria del Mar Espinosa (2015) 5S methodology implementation in the laboratories of an industrial engineering university school, Safety Science 78: 163-172 16 Duggan, Kevin J (2002) Creating Mixed Model Value Streams: Practical Lean techniques for building to demand New York: Productivity Press, 2002 17 Visco, D 5S Made Easy New York: CRC Press, 2016 18 Ramdass, Kem (2015) Integrating 5S Principles with Process Improvement: A case study, Proceedings of PICMET’15: Management of the Technology Age 19 HungLin, Chi (2011) 5S implementation in Wang Cheng Industry Manufacturing Factory in Taiwan, A Research Paper Submitted in Partial Fulfillment of the Requirements for the Master of Science Degree in Technology Management University of Wisconsin-Stout 20 Jeffrey, K Liker (2004) The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer (1st ed.) New York: McGraw-Hill, Inc 21 J Liker and D Meier, The Toyota Way Fieldbook McGraw-Hill Education, 2006 22 Cunningham, J (2020) The Eight Wastes of Lean From: https://www.lean.org/the-lean-post/articles/the-eight-wastes-of-lean/ 23 Martins P A (2015) Supermarket Sizing in Production Flow Systems Based On Lean Principles Thesis, Faculdade De Engenharia Da Universidade Do Porto, Portugal 24 Yamashita, K (2004) “Implementation of Lean Manufacturing Process to XYZ Company in Minneapolis Area” University of Wisconsin-Stout 25 Ahmad, N A., Ahmed, J., Noriah, Y., & Nurul, H A H (2014) “Implementation 83 of Continuous Flow System in Manufacturing Operation” Applied Mechanics and Materials Vol 393, pp 9-14 26 Mishan, N N., & Tap, M M (2015) Increasing line efficiency by using timestudy and line balancing in a food manufacturing company Jurnal Mekanikal, 38, 32-43 27 Stevenson, W.J (2009) Operations Management (10thed.) New York: McGraw- Hill 28 Unknown author (2020) Pull Systems (Kanban) – Lean Techniques, from https://www.ineak.com/pull-systems-kanban-lean-techniques/ 29 Filip, F.C & Marascu-Klein, V (2015), The 5S lean method as a tool of industrial management performances IOP Conf Series: Materials Science and Engineering 95 84 APPENDIX A: VALUE STREAM MAPPING ICONS Material Icons Represents Notes Manufacturing process This icon is a process, operation, machine or department, through which material flows Typically, to avoid unwieldy mapping of every single processing step, it represents one department with a continuous, internal fixed flow path Outside sources Represent customer and vendor Information Describe an information flow Data box This icon goes under other icons that have significant information/data required for analyzing and observing the system Movement of production material by PUSH This icon represents the pushing of material from one process to the next process Push means that a process produces something regardless of the immediate needs of the downstream process Manual Information flow A straight, thin arrow shows general flow of information from memos, reports, or conversation Frequency and other notes may be relevant “Go see” schedule Gathering of information through visual means 85 Operator This icon represents an operator It shows the number of operators required to process the VSM family at a particular workstation Timeline The timeline shows value added times (Cycle Times) and non-value added (wait) times Use this to calculate Lead Time and Total Cycle Timeline Time Excavator Used to load blasting stones to the dump truck Wheel Loader Used to load finished products to dump truck in loading customers process Dump Truck Transport blasting stones to the stone crushing process and transport finished product to customers Withdrawal Pull of material, usually from a supermarket Indicates a device to limit quantity and ensure First in First out FIFO flow of materials between processes lane Maximum quantity should be noted Production Kanban The “one-per-container” Kanban Card or device that tells the process how many of what can be produced and gives permission to so Withdrawal Kanban Card or device that instructs the material handler to get and transfer parts(i.e from a supermarket to the consuming process) Kanban post Place when Kanban are collected and held for conveyance Kanban drive in batch 86 Load levelling Tool to intercept batches of Kanban and level the volume and mix of them over a period of time Highlights improvement need at specific processes that are critical to achieving the value “Kaizen lightening burst” stream vision Can be used to plan kaizen workshop WH Warehouse An out-door warehouse to store blasted stone Supermarket A controlled inventory of parts, finished goods that is used to schedule production at downstream process Movement of finished goods to the customer Truck shipment Inventory 87 Note frequency of shipments Count and time should be noted APPENDIX B: CYCLE TIME MEASUREMENT DATA OF ACTIVITIES IN STONE PRODUCTION PROCESS Cycle time measurement data of activities in stone production process (Source: SPSS) 88 Time study for loading process (Source: Author research) Time study for Transporting and feeding process (Source: Author research) Time study for Crusher process (Source: Author research) 89 Time study for Loading customers process (Source: Author research) Time study for Moving to intermediate storage process (Source: Author research) 90 Waiting time at Loading process (Source: SPSS) Waiting time at Moving process (Source: SPSS) 91 APPENDIX C: VOLUME OF STONE IN 2021 Month Unit 1x2 volume January T 25,832.71 February T 30,083.79 March T 20,408.51 April T 10,000.00 May T 25,900.28 June T 28,030.00 July T 27,359.00 August T 22,154.00 September T 11,310.00 October T 16,543.06 November T 18,000.00 December T 21,500.00 Total T 257,121.35 (Source: Internal documents of Dong Phong Co., Ltd) 92 APPENDIX D: 5S AUDIT CHECKLIST 5S AUDIT CHECKLIST Project name: Applicationby: of 5S in quarry 3A Prepared Prepared day: Prepare by: Prepared day: Nguyen Ngoc Toan 15/11/2021 Very Unacceptable Unacceptable Average Good Perfect Check list Score 5S Sort No Check item Parts and Materials Machines and Equipment Tools Visual Control Documentation Evaluation criteria Are all stock items necessary? Are all machine and pieces of equipment used regularly? Are all tools used regularly? Can all unnecessary items be distinguished at a glance? Are all obsolete documents purged routinely? Sub Total Maximum Possible Percent (%) 93 20 Set in Order Location Indicators Item Indicators Quantity Indicators Marking of Walkways Tools Are shelves and storage areas marked with location indicators? Are shelves marked to show which items go where? Are maximum and minimum allowable quantities indicated? Are lines or other markers used to clearly indicate walkways and storage areas? Are tools arranged to facilitate removing and replacing them? Sub Total Maximum Possible 20 Percent (%) Shine Floors Machines Cleaning and checking Cleaning Responsibilities Habitual Cleanliness Are floors kept clean and shiny? Are machines wiped clean and free of waste, water, and oil? Is equipment inspection combined with equipment maintenance? Is a person responsible for overseeing cleaning operations? Do employees habitually sweep floors and wipe equipment without being told? Sub Total Maximum Possible 20 Percent (%) Standardize Improvement Memos Improvement Ideas Key Procedures Improvement Plans Operators The first 3Ss Are improvement memos generated regularly? Are improvement ideas being implemented? Are standard procedures clear, documented, and actively used? Are future standards considered? Are operators adequately prepared and appropriately dressed? Are the first 3Ss (Sort, Set in Order, Shine) being maintain? Sub Total Maximum Possible Percent (%) Sustain Training Tools and Parts Is everyone trained in the standard procedures? Are tools and parts stored correctly? 94 24 Stockpiles Controls Procedures Activity Boards Are stockpiles controls adhered to? Are procedures up-to-date and reviewed regularly? Are activity boards up-to-date and reviewed regularly? Sub Total Maximum Possible Percent (%) Grand Total Grand Total 104 Maximum Possible Overall Percent 95 20