research methodology report application smed in packing line case study at scancom

ABSTRACT Single-Minute Exchange of Die SMED is a lean manufacturing technique that aims to reduce the time required to changeover or setup a machine from one production run to another..

VIETNAM NATIONAL UNIVERSITY — HO CHI MINH CITY

INTERNATIONAL UNIVERSITY

SCHOOL OF INDUSTRIAL ENGINEERING & MANAGEMENT

RESEARCH METHODOLOGY REPORT

Application SMED in packing line

Case study at Scancom

Lecturer: Dr Dao Vu Truong Son

Student Name: Lé Thi Yén Vy

Student ID: MIEIU22005

Ho Chi Minh City, 20 December, 2021

ABSTRACT

Single-Minute Exchange of Die (SMED) is a lean manufacturing technique that aims to reduce the time required to changeover or setup a machine from one production run to another In a packing line, SMED can be used to minimize the amount of time required to changeover the line from one product to another This technique is particularly useful in packing lines where frequent product changes are required to meet customer demands

The objective of this study is to evaluate the effectiveness of implementing SMED in a packing line for a food processing company The study employed a case study approach and conducted observations, interviews, and data analysis to identify the factors that influence the changeover time and the benefits of implementing SMED

The results of the study showed that the implementation of SMED in the packing line led to a significant reduction in changeover time, from an average of 30 minutes to less than 10 minutes This reduction in changeover time resulted in increased production capacity and efficiency, reduced inventory, and improved customer satisfaction

The study also identified several factors that contributed to the success of SMED implementation, including employee involvement and training, standardization of procedures, and continuous improvement The findings of this study suggest that the implementation of SMED can be an effective strategy for improving the performance of packing lines in food processing companies

In conclusion, this study highlights the potential benefits of implementing SMED in a packing line for a food processing company By reducing changeover time, this technique can increase production capacity, efficiency, and customer satisfaction, and can be an important tool for improving the overall performance of packing lines

1 INTRODUCTION

1 Motivation

Due to the Covid-19 pandemic, many manufacturers having production plants in Vietnam have suspended production Particularly, in Ho Chi Minh City and the Southern provinces, to comply withthe COVID-19 prevention rules, firms have been forced to stop operating or sharply reduce production This disruption leads to successive reduction in manufacturing output

In this project, therefore, our team decided to delve into the packing line of Scancom, a Denmark’s manufacturer and distributor in the outdoor furniture and hardwood products Because of the lockdown situation, Scancom had to move the ALU Factory from Binh Duong to Tien Giang In theirnew production factory, we collected data, identified, analyzed current problems and gave suggestions for improvement

2 Problem statement - The need of study

Due to moving the factory from Binh Duong Province to Tien Giang Province, Scancom is having

to face many problems in production as shown in the fishbone diagram below This leads to the

low KPI

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Figure 1: Fishbone diagram From the current KPI 0.6 (product/person/hour), Scancom would like to increase the target KPI to 1.5 (product/person/hour) To solve this problem, it is necessary to comprehensively improve all aspects: reduce waste, reduce cycle time, increase product quality control, improve maintenance and service quality, etc

From the fishbone diagram, our group realized that the packing line of ALU Factory - Scancom Vietnam had a high cycle time and downtime To put it another way, the packing line wastes a lot of time This results in lower productivity and failure at meeting the production’s plan

3 The design project objectives and requirements

The objective of this project is applying the SMED method and calculating OEE based on analytical data obtained from SMED to attain the goals:

- Identify internal versus external tasks and convert internal tasks to external tasks to reduce the amount of time taking to change from one step to another

- Evaluate the productivity and operating efficiency of the new process order in the packing line

- Recommend to improve the packaging line efficiency based on the model output analysis

4 Scope and Limitations

Scope: This project focuses on the packaging area (prepackaging and packaging line) of ALU Factory

of Scancom Vietnam

Limitation: Due to Covid - 19, we do not have an opportunity to observe the whole process of the packing line at the factory We just collected and analyzed data of setup and changeover time Therefore, our small project can only solve the productivity problems in the whole problems that need to be considered

2 DESIGN CONCEPTS CONSIDERATION

1 Overview

Since being founded on the 1st of April 1995, ScanCom has grown to become a leading global manufacturer of outdoor furniture ScanCom has its legal headquarters in Denmark and management is partly located in Ho Chi Minh City, Vietnam ScanCom has sales offices in Denmark, the United Kingdom, Germany, Spain, the USA, Hong Kong and Vietnam and manufacturing sites in Brazil, Indonesia and Vietnam In which, Vietnam is the only country where SCANCOM company has built its headquarters, which is both a production factory and an operating and transaction office ScanCom International is a start company in the company map of the global outdoor exterior Their main products: Fully folding tables and chairs, aluminum tables and chairs, plastic tables and chairs, teak trees, etc

Company’s industry leading manufacturing facilities are almost based in Brazil, Indonesia and Vietnam and these locations are equipped with cutting edge technology and advanced computers that allow us to augment our calculations and work efficiently

The company aspires to create outstanding products that combine international expertise with advanced manufacturing techniques and a proven commitment to corporate social responsibility Each product is shipped in Asia under the strict supervision of ScanCom and tested to international standards for quality, precision and functionality

Company Name Scancom Company Limited

Legal Name SCANCOM

Company Address Song Than 1 Industrial Park, Lot 10, Road 8, District, Di An, Binh Duong

Logo

Website https://www.scancom.net

Officers Denmark

Phone 0274 3732 650

Product Manufacture of tables and chairs

Table 1: The basic information of SCANCOM Company Due to the effect of Covid -19, SCANCOM companies have transferred the factory from Binh Duong

to Tien Giang province After relocating the new ALU Factory, the productivity and quality assurance

of the Packing Line decreased too much, unable to meet the delivery schedule as planned

There is no systematic training on how to do WI for PPD staff ( 90% of the number of staff in this new location is new, the old staff has experiences does not want to move to the new location of the factory) and the measurement create a checklist to see if the PPD training program meets the requirements PPD planning WI training for new employees - with assessment, record and re- evaluation) and this leads to WI is not close to reality The practical requirements for WI/SOP are not clear to be applied to production, A huge impact on the performance of the factory in particular and the company in general

Knowing this problem, we came up with an application to solve the situation and improve work efficiency and save more time by redesigning the layout of the factory, reducing the time and increasing the WI based on using SMED - Lean Manufacturing to reproduce the results before and after applying SMED methods

2 Literatures Review

SMED, like many process improvement methodologies, originated in Japan at Toyota and has since been adopted by companies across various industries In the 1950s, Shigeo Shingo, a consultant for Toyota, observed inefficiencies in the body molding process that resulted from lengthy changeovers between different phases These switchovers took between two and eight hours, leading to wasted time and resources

To address this problem, Shingo proposed a new approach that involved modifying the entire process to reduce changeover times This required changes to factory equipment and vehicle parts,

as well as a new order of steps in building car body moldings By the 1970s, the changeover time had been reduced to just three minutes, which supported the just-in-time manufacturing process that is a key component of the Toyota Production System

Businesses in various industries have since adopted the SMED methodology for improving their own processes SMED can be applied to any process that requires a changeover, from software development to restaurants to racing In general, SMED involves two types of setup components: external and internal External setup components can be completed while the equipment or process

is running, while internal setup components must be completed while the equipment or process is stopped Both types of setup components are necessary for successful SMED implementation SMED is a lean manufacturing technique that focuses on reducing setup times in equipment changeovers The goal of SMED is to make the changeover process as quick and efficient as possible, allowing companies to be more flexible and responsive to customer demands

One of the key principles of SMED is to differentiate between internal and external setup activities Internal activities are those that must be performed while the equipment is stopped, such as removing and installing parts, adjusting settings, and performing maintenance External activities are those that can be performed while the equipment is still running, such as preparing tools and materials, setting up fixtures, and cleaning parts

By separating these activities and converting as many internal activities as possible to external activities, the overall setup time can be reduced drastically The SMED process seeks to identify and eliminate waste in the setup process, including waiting, transportation, and unnecessary motion, with the aim of achieving a quick and efficient changeover

No | Title Public Advantage Disadvantage

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and Kaizen studies for internal setup

Alternative ways to shorten internal setups can be searched in detail

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Gouveia, R., & cooperation among all | - The search for improvement Silva RF | are fundamental to should be constant and not

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3 OEE concept

a What is OEE (overall equipment effectiveness)?

This is a typical parameter in Total Productive Maintenance It is the world's most popular standard for measuring the productivity and operating efficiency of an asset

OEE helps businesses identify problems in asset usage and maintenance, determine what percentage of production time is actually productive, and is a standard metric for tracking progress

in fixing these problems It can be said that the goal of OEE and the identification of OEE is to help businesses improve continuously

b Distinguish between performance (Effectiveness) and efficiency (Efficiency)

Before calculating and delving deeper into the role of OEE, it is important to first understand the difference between efficiency and effectiveness when discussing OEE

Efficiency (Effectiveness) in OEE is a concept that refers to the efficiency of equipment based on the relationship between the manufacturability based on a given engineering design (set standard) and the manufacturability of the equipment recognized in practice

For example, the enterprise's equipment and assets are capable of producing 100 products in 1 hour, but in fact, when operating only 80 products, the efficiency is 80%

Efficiency in OEE is also a concept that refers to the efficiency of the device, but is considered in many other aspects and is often associated with achieving efficiency quickly (quickly) and smarter (intelligent)

Therefore, Efficiency will not tell a business how efficient a machine is as a whole because efficiency does not consider other factors such as the number of operating staff, the amount of energy or other factors other resources required for the device to reach 80% efficiency

c Simple and detailed OEE calculation:

Based on two concepts of efficiency (Effectiveness) and efficiency (Efficiency), we calculate OEE OEE is determined through 3 aspects: level of usefulness A (Availability) - quality Q (Quality) - performance P (Performance) OEE is calculated according to the formula:

OEE = (A) Availability x (P) Performance x (Q) Quality

What is Availability in OEE? This is a measure of operating time loss based on a ratio comparison between actual operating time (product-generating machine run time) and potential operating time (machine running time) according to the plan:

Availability = Actual uptime / Potential uptime x 100%

What is Quality in OEE? This is a measure of quality loss based on the comparison of the ratio of the Total Quality Product (the amount of product that meets the customer's requirements and specifications) to the Total Product produced out

Quality = Total qualified products / Total manufactured products x 100%

What is Performance P (Performance) in OEE? This is a measure of operating speed loss and loss based on the comparison of the ratio of the actual product production to the amount of product that can be produced at the design capacity in the same time period

Performance = Total production / (Actual running time x Design capacity) x 100%

SYSTEM DESIGN

1 SMED

SMED stands for Single-Minute Exchange of Die The SMED system is a theory and set of techniques that make it possible to perform equipment setup and changeover operations in fewer than 10 minutes — in other words, in the single-minute range SMED principles can be used and applied in almost any operation or process It was developed to improve die and machine tool setups SMED’s goal is to reduce the setup time to within minutes Depending on the process, setup within minutes may be very difficult, but in most cases, if the SMED principles are followed, drastic reductions in setup time can be obtained

The basic principles of SMED are:

e Identify internal versus external changeover tasks

e Analyze each task’s real purpose and function

e Focus on no/low cost solutions

e Aim to eliminate changeover time

In an SMED process, changeovers includes 2 types of elements:

e Internal elements must be completed when the equipment is stopped

e External elements can be completed while the equipment is running

The main goal of the SMED process is to have as many external elements as possible while streamlining and simplifying all other elements