capstone design report application of kanban for management and supplying of materials for robot welding and grinding

The method used is to apply KANBAN - “ a Lean method to manage and... The last factor and also the main factor -lack of hardware-components causes this factor is that workers do not prep

INTERNATIONAL UNIVERSITY

SCHOOL OF INDUSTRIAL ENGINEERING AND MANAGEMENT

CAPSTONE DESIGN REPORT

APPLICATION OF KANBAN FOR MANAGEMENTAND SUPPLYING OF MATERIALS

FOR ROBOT WELDING AND GRINDING

A CASE STUDY TO SCANCOM VIETNAM

Advior: M.Sc Duong Vo Nhi Anh

Ho Chi Minh city,VietnamJan, 2022

3 Current System Investigation 12

4 Design Concepts Consideration 13

4.1 Suggested Areas of Improvement 13

4.2 Approaches for Improvements 13

Chapter III METHODOLOGY 14

1.Approaches Comparison and Selection: 14

2.System Design Description 17

3.Expected Result 18

CHAPTER IV: PROTOTYPE DEVELOPMENT AND IMPLEMENTATION 19

1.Data collection 19

1.1.Italica carver easy chair - PN4084C 19

1.2.Ragusa carver easy chair - PN5110D 20

1.3.Tagula stacking amchair - PN68811C 21

2.1 Data collection 22

2.2 Calculating vehicle capacity 24

2.3 Calculate the number of kanban cards, choose the optimal option 28

2.4 Design the kanban board 29

Chapter V RECOMMENDATION 32

1.Introduce about Tecnomatix plant simulation: 32

2.Tecnomatix plant simulation application 35

2.1 Case study 1 35

2.2 Case study 2 38

Chapter VI CONCLUSION 41

REFERENCES 42

The presented research paper refers to the problem of solving problems in theproduction line of ScanCom company Tecnomatix Plant Simulation software application isused to identify bottlenecks and shortcomings in the production, logistics, and transportationsystems of a corporation Thanks to the application of simulation approaches and leanmanufacturing tools - the Kanban Method, business process losses are eliminated and,consequently, flow throughput is improved Constraints were defined on the constructedsimulation model by the Bottleneck Analyzer in the TX Plant Simulation softwareenvironment Constraints were defined on the constructed simulation model by theBottleneck Analyzer in the TX Plant Simulation software environment, and a method ofoptimizing logistics flows was built and verified by adding the Kanban pull system As aresult, the problem was solved effectively

The process of researching this project was a really meaningful time for us This isalso an opportunity for me to better understand what I have learned at school and how toapply it.

To complete this proposal, we would like to express my gratitude to M.Sc Duong VoNhi Anh, lecturer at School of Industrial Engineering and Management – InternationalUniversity, who directly guided and helped us a lot during the process of making the report.He always creates favorable conditions for us to have discussions, gradually guide and shareexperiences so that I can complete this report well Once again, We would like to express mysincere thanks to Mr.

We would like to thank the professors at School of Industrial Engineering andManagement – International University for their dedication in imparting knowledge over theyears Those knowledge and experience sharing are valuable luggage for me to approach andsolve this problem.

We sincerely thank Mr Ngo Van Ly- Factory Manager for enthusiastically helping usa lot in understanding the production process, technical issues, and helping me to access andlearn the knowledge to carry out this research

Finally, We would like to send to the teachers of International University in generaland the teachers of Industrial Engineering and Management in particular, to wish good health,peace and success in your teaching career!

CHAPTER I INTRODUCTION

1 Background of study

The pandemic is still complicated on a global and Vietnamese scale, affecting manyeconomic sectors In this context, businesses need to have a continuous "turning" in strategicorientation as well as the method of implementing those strategies The COVID-19 pandemichas changed consumers globally - from their point of view of values, behavior, to the waythey consume

According to the EY Future Consumer Index in May 2020, 89% of surveyedconsumers are and will change the way they shop, 76% are and will change the way theychoose products and services (SPDV), and half (50%) will probably only spend on someessential products Therefore, these changes are sure to have far-reaching effects on theoperations of businesses

In order to adapt to the current context, businesses need a change in the productionprocess to survive One of the challenges for most businesses is inventory management aswell as eliminating waste in production Usually, conducting inventory tracking andmanagement at businesses to maintain the right amount of goods is often considered a simpletask However, for businesses that ship large quantities of products, inventory management isnot so simple In addition to monitoring and checking the quantity of products, they also haveto make a plan to use the product from time to time, predict the excess/shortage quantity,predict the demand for goods when performing marketing activities as well as supply provideinformation necessary for financial reporting Therefore, the need to strictly control inventoryin these enterprises is very clear The use of methods and methods to manage inventoryeffectively as well as save costs is also a challenge

In this research paper, we focus on realizing the company's current goal of reducingthe pre-production detail inventory of the factory for the 2020-2021 season compared to the2021-2022 season The method used is to apply KANBAN - “ a Lean method to manage and

improve work across human systems” for the management and allocation of materials for thewelding robot and the grinding stage.

2 Problem statement

ScanCom has offices in several prominent marketplaces throughout the world,including Denmark, England, and Germany, the United States, and many manufacturingplants in populated locations like Indonesia and Brazil, thanks to its strong location andpersonnel Vietnam is one of them, with ScanCom establishing a factory and office in thesame site to conduct business The factory's production is always high-efficiency and on-timewith partner orders Scancom maintains continuous communication by implementing ISO9001:2000 and ISO 14001:2000 in all departments to reduce nonconformance.It wasdiscovered that they always evaluate each other periodically and ensured not be over 10%different in performance Aside from the positive aspects, the production system still needs tobe improved in many areas in order to reduce costs and waste, so it is not included in the finalorder.

Scancom is facing defective goods in the production process, defective goods causingwaste and huge costs for businesses Faulty products appearing frequently and without strictcontrol are one of the major causes of waste for Scancom Based on Pie chart and statisticstable of robot stop rate according to error cause group As well as sorting and analyzing inorder from high to low with the weights of Frequency and Ability to improve, the companyhas determined that the cause of the above waste is the robot stop rate There are many smalloperations such as shrinking outside the norm, damage to the robot due to lack of predictivemaintenance, manipulation when adjusting welding points, collisions when moving, problemsdue to faulty goods for the next stage, and accidents The last factor and also the main factor -lack of hardware-components causes this factor is that workers do not prepare in time, use thewrong type, fail in production, and the warehouse does not provide enough.

The author recommends that Scancom use the Kanban management method inproduction after studying the production process and production statistics in order to controlthe process more quickly and easily while also minimizing costs The costs incurred, as wellas worker errors, result in variations in the quantity of goods.

3 Objectives

For this research, we have 3 main objectives:

- Objective 1: Identify the waste that is outstanding at the company - Objective 2: Identify the causes of waste in the company

- Objective 3: Provide solutions to reduce waste at the company - Apply the Kanban methodto manage and allocate materials to:

❖ Increase robot uptime by reducing hardware shortages.❖ Parts inventory reduced from 1,700,000 to 1,400,000 pcs.

❖ Eliminate rework costs due to incorrect use of Hardware, Components.

4 Scope and Limitations

4.1 Scope

The production line comprises the final stage of finishing the product shape using anautomated robotic system's automatic welding Furthermore, the manufacturing process andthe company have suffered losses due to ineffective raw material management, robotstoppage for objective and subjective causes, and other production issues Applying Kanbanto processes will be a more appropriate route for the organization and will help to solve thechallenges mentioned above

4.2 Limitations

Because the forecasting and planning model produced in this study will be used to aspecific production system at a specific car company, actual concerns must be included in themodel However, there are certain limits to the capstone design:

- On the subject of people: the project's success in implementing Kanban in production willhave a significant impact on human resources The average employee leave rate is 8% permonth, and the number of new employees with less than one year of experience is 80%,both of which are significant difficulties that have a direct impact on the project As aresult, while using the aforementioned technique to change it to meet the scenario andrequirements at the time, it is vital to rely on the actual situation.

- Objectively: the COVID epidemic condition at the Tien Giang factory remainsunsatisfactory, with employees unable to return to work or get training In addition, theproject's progress was halted, and it was unable to be used in practice to tackle unresolvedimplementation concerns.

Furthermore, this project operates by neglecting the impact of input product qualityissues, natural disasters, and indirect resources such as human behavior and resource physicalstatus If the primary goal is to address the aforementioned concerns, this project will beineffective; however, if the aforementioned issues are addressed, this project will besuccessful.

5 Project plan

Gantt Chart

Chapter II DESIGN CONCEPTS CONSIDERATION

1 Overview

1.1 Company“Doing Business the Right Way – the ScanCom way”

ScanCom Group companies and production facilities are all certified with highenvironmental, quality and social accountability standards ScanCom is committed to theappropriate practice of social accountability and compliance for the benefit of our employees,customers and other stakeholders ScanCom strongly encourages its business partners andsuppliers to implement the Code of Conduct guidelines and achieve sustainable

improvements in social compliance, environment and quality assurance ScanCom is amember of the UN Global Compact and supports all guidelines and principles.

1.2 Case study

In the first quarter of 2021, Factory output increased by 8% compared to the sameperiod in the 20-21 season Due to the outbreak of the Covid-19 epidemic in Vietnam, thefactory has stopped working until now Through the production process, requirements arealways set to meet production requirements and reduce pre-production detail inventory by17.6% compared to season 20-21 But in fact, the robot downtime is high (productionrequirement is to complete 95% of the monthly plan), the cost of damage caused by using thewrong parts, the wrong hardware and the actual inventory of parts before production season.20-21 is: 1,700,000 pcs This seriously affects the production line and the work of relateddepartments The goal is to reduce part inventory from 1,700,000 to 1,400,000 pcs, increaserobot uptime by reducing hardware shortages and eliminate rework costs due to misuse ofHardware, Components This saves the company $852.7 in losses per month and saves$54,819 in total project value (estimated)

2 Literature Review

2.1 Lean Manufacturing

Lean means manufacturing without waste Waste (“muda” in Japanese) has seventypes: waste from overproduction, waste of waiting time, transportation waste, inventorywaste, processing waste, waste of and waste from product defects Despite the wideknowledge and available resources, many companies are struggling to stay “lean” The goalsof lean manufacturing are to reduce waste in human effort and inventory, reaching the marketon time, and managing manufacturing stocks that are highly responsive to customer demandwhile producing quality products in the most efficient and economical manner The conceptof Lean Thinking (LT) originated from ToyotaProduction System (TPS) that determined thevalue of any process by distinguishing value-added activities or steps from non-value-addedactivities or steps; and eliminating waste so that every step adds value to the process Leanmanufacturing focuses on efficiency, aiming to produce products and services at the lowest

cost and as fast as possible For lean manufacturing, Kanban serves as a tool to control thelevels of buffer inventories in the production; in simpler terms to regulate productionquantities When a buffer reaches its preset maximum level, the upstream machine is directedto stop producing that part type Hence, in the manufacturing environment, Kanban aresignals used to replenish the inventory of items used repetitively within a facility.

2.2 Kanban

Kanban system is one of the tools under the lean manufacturing system that canachieve minimum inventory at any one time The Kanban system provides many advantagesin managing operations and business in the organization Using the Kanban system is astrategic operational decision to be used in the production lines It helps to improve thecompany’s productivity and at the same time minimize waste in production The Kanbansystem requires production only when the demand of products is available Manufacturingcompanies especially in Japan have implemented the Kanban system successfully as thissystem originates from this country However, it was found that not all companies inMalaysia, particularly, among the small and medium enterprises (SME) in the manufacturingsector, are deploying the Kanban system Even though there are small medium enterprises(SMEs) using the Kanban system, they are facing problems in making the system effective.Thus, understanding the Kanban system is crucial in lean manufacturing.

Kanban (kahn-bahn) is a Japanese word; when translated it literally means “visiblerecord” or “visible part” Generally, it refers to a signal of some kind; thus in manufacturing,it refers to Kanban cards The Kanban system is based on a customer of a part pulling the partfrom the supplier of that part The customer of the part can be an actual consumer of afinished product (external) or the production personnel at the succeeding station in amanufacturing facility (internal) Likewise, the supplier could be the person at the precedingstation in a manufacturing facility The premise of Kanban is that material will not beproduced or moved until a customer sends the signal to do so Nowadays in order to achievemanufacturing excellence, most organizations developed various techniques and methods tomake their production operations productive and effective Most Japanese companiesimplement the Kanban system because it saves costs by eliminating over production,developing flexible work stations, reducing waste and scrap, minimizing the waiting timesand logistics costs; thus reducing the inventory stock levels and overhead costs.

Based on the literature, there were key determinants in setting up the Kanban system.In order to ensure the implementation of Kanban system a success, certain factors should beconsidered such as inventory management, vendor and supplier participation, qualityimprovements and quality control and employee and top management commitment.

Inventory: According to Heizer and Render, 2005, the company never achieves a

low-cost strategy without good inventory management These authors quoted inventory areclassified into four categories They are raw material inventory, work in progress inventory,finished goods and maintenance, repair, operating inventory Since inventories are importantin organization, managing these inventories becomes complicated since it involves storageand holding costs and space in the manufacturing plant Inventory management is a complexproblem area owing to the diversification of real life situations.

Supplier Participation: The Kanban system requires supplier commitment in

providing fast services to provide effective supply of raw materials Basically the Kanbansystem only requires a minimum level of inventories in the production line where theinventories number should be equal with the production numbers Therefore suppliercommitment plays an important role in order to ensure production lines operate smoothly andefficiently There are five important criteria when choosing suppliers: quality, willingness towork together, technical competence, geography, and price The aim of just in time (hereaftertermed as JIT) is to eliminate stocks rather than move them to another point in the supplychain And, again, the way to achieve this is through cooperation The Japanese Kanbanprocess of production is sometimes incorrectly described as a simple just-in-timemanagement technique, a concept which attempts to maintain minimum inventory TheJapanese Kanban process involves more than fine tuning production and supplier schedulingsystems, where inventories are minimized by supplying these when needed in production andwork in progress is closely monitored.

Quality Improvement and Quality Control: The Kanban system not only assists

companies in saving their cost by having fewer inventories but it also controls and maintainsquality improvements of the output Just in Time (JIT) is one of the elements constituted inthe total quality management (hereafter termed as TQM) system For an effective JIT, alldelivered parts and products must achieve a certain level of quality standards before thoseparts and products are accepted for the next operations or reaching the customer's incomingend (input) This is due to the four main reasons includes improved processes can makeproducts with guaranteed high quality, high quality gives producers a competitive advantage,consumers have become used to high quality products, and will not accept anything less and

high quality reduces costs such as prevention, appraisal, internal failure and external failurecosts (Bernstein, 1984) Traditional companies believe quality is costly, defects are caused byworkers and the minimum level of quality that can satisfy the customer is enough.Organizations practicing the Kanban system believe that quality leads to lower costs, thatsystems cause most defects, and that quality can be improved within the kaizen framework.

Employee Participation and Top Management Commitment: Nowadays,

commitment and good rapport between employees and management have become a part ofculture in organizations to ensure their people in organizations are able to cooperate witheach other to achieve their objectives The researcher has classified Japanese culture issuesinto two broad categories worker related and management related This distinction betweenworkers and managers has helped Japanese management implement JIT successfully Allemployees should be concerned and fully participative with the success of the new systemand the success of the organization for the future; thus they should be treated equally andfairly For the Japanese workers, they are totally committed to their work and the company.They are loyal, co-operative, flexible and willing to work long hours when needed.

3 Current System Investigation

ScanCom follows mass production in their manufacturing The process isdemonstrated in the graphic below In this report, we will concentrate mostly on Shop Floor01 and Shop Floor 02 (which is conducted in the same factory)

Figure 1 Flow of production process

Production Process: Raw materials which are monolithic aluminum bars are

extruded into profile form All of these are stock in a warehouse named SG2-MM The threeprevious steps are monitored by PPM Then if there is any work order received, they plan the

necessary number of aluminum bars in Kanban cards and send it to the warehouse Wheneverthe SF01 gets the material, the production process begins Four must-have stages are cutting,machining, heating and coating and packing, some products do not pass through the SF03.After each stage, the finished products are stored and prepared to be transferred to thefollowing stage.

4 Design Concepts Consideration

4.1 Suggested Areas of Improvement

Apply Kanban to manage and allocate materials for ROBOT WELDING ANDGRINDING STAGE to reduce/eliminate:

• Robot downtime due to missing Hardware components.• Using the wrong Hardware component by getting it wrong.

4.2 Approaches for Improvements

‘Just in time’ (JIT) approach is based on a lean manufacturing system which

develops to optimize and improve manufacturing efficiency by reducing manufacturinglead time through waste elimination and kanban It was derived from the Toyota ProductionSystem as a principle to minimize inventory and improve throughput Takt time is used toregulate manufacturing pace on the floor As a result, smooth material flow and synchronizedmanufacturing process has been established to increase efficiency and productivity of themanufacturing system and expose all wastes to the entire area for improvement The Kanbansystem emphasizes the minimum level of inventory It ensures the supply of the right part, inthe right quantity, in the right place and at the right time

Kanban system is a mechanism to manage and control flow of material in

manufacturing Cardis used to regulate the pattern of material flow throughout the process Itwas driven from downstream needs and triggered upstream production Upstreamproduction is then initiated to replenish those parts that have been withdrawn Mostresearchers had concluded that the Kanban system could lead to reduction of lead time andmanufacturing excellence.There are two types of kanban system which are single cardkanban system and two card kanban system

Single card kanban system uses only 1 type of kanban card to trigger upstreamproduction when needed This card is called ProductionInstruction Kanban (PIK) While two

card kanban systems are using two types of card which are Production Withdrawal Kanban(PWK) and Production Instruction Kanban (PIK) PWK card is used to withdraw neededgoods from preceding process and PIK card is used to give instruction to preceding process toproduce what is needed for inventory replenishment.In order to achieve lean goal,essentially kanban system is established on factory floor to align flow of material byremoving all waste and source of waste Waste is anything that customers are not willing topay for and it could be categorized into 7; transportation, over inventory, excess of motion,waiting, over process, overproduction and defect

The Kanban System that was implemented at the manufacturing area was equippedwith relevant tools such as heijunka board, lot formation post,kanban chute and kanbanpost These tools are used to visualize abnormality and assist production associates towork according to time JIT approach enables companies to achieve high product quality withminimal resources.

Chapter III METHODOLOGY

Chapter 3 will present how the approaches are chosen, combined, implemented andgiven the expected output In this Chapter, there are three sections:

❖ Section 1: Approaches Comparison and Selection❖ Section 2: System Design Description

❖ Section 3: Expected Result

In Section 1, the approaches are summarized into a comparison table to select theoptimal solution Then from the selected result, Section 2 will be the proposed system designfor the framework Finally, in Section 3, the expected targets will be given.

1 Approaches Comparison and Selection:

Tx Plant Simulation Software

- Detect and eliminate problemsthat would otherwise require costly and time-consuming remedial measures.

- Helping manufacturers optimize capital investment for facilities while ensuring desired

Is a complex software and requires a high level of proficiency to use effectively

production throughput.

- Optimizing the performance and energy usage of existing production systems.

- Validate production system in 3D virtual environment before actual application.

eKanban - Easily track every step along the way (even with a high number of kanban cards).- No printing, no loss of kanbancards.

- Access to real-time information on current production status, as well as inventory.

- Transparency and effective communication – everyone has access to the same data.

- A more flexible response to customer needs.

- Quick and easy reporting.- The ability to analyze not onlyreal-time but also historical dataand continuously improve the production process.

- Have to change the whole working system.

- Requires highly qualified staff and technicians when applied in practice.

System Dynamics Modeling

- Ability to combine complex problems into one model.- Provides a combination of environmental, social, and economic aspects, as well as interdependence with other

- Trying to model such complex systems can be a very difficult task to accomplish.

- Identifying each component or subsystem can be a very time-

- Ability to study the behavior of systems in order to evaluate design alternatives,

improvements, or to justify costs.

-Various levels of detail and complexity can be modeled according to the grade of accuracy and detail needed for the decision-making process.- Uncertainties and dynamic (time changing) behavior of the real system can be modeled.- Phenomena can be sped up or slowed down in the simulation An entire shift can be analyzed in minutes

- Can only be applied if the

simulation model can replicate the reality to a sufficient extent.- Stochastic skills and an adequate level of experience and knowledge are needed for the creation of a simulation model This time-consuming simulation approach is therefore limited to larger mining companies that have the financial capacities to invest in simulation.- Like numerical mathematical models and traditional spreadsheet analysis, Discrete Event Simulation only provides estimations for the model outcomes.

Agent-based Modeling

- Captures emergent phenomena- Provides a natural description of a system

- Flexibility

- Low cost and time saving

- Considering the nature of social phenomena with too many (known & unknown) complex factors

- A lot of agent-based toolkits include performance limitations: with a large number of agents, execution speed drops considerably.

- Not designed for extensive simulations.

Through researching and inquiring, different approaches have been devised tocompare performance including Tx Factory Simulation Software, eKanban, SystemDynamics Modeling, Discrete Event Simulation and Agent-Based Models All approaches areused to manage production systems, processes, reduce costs and inventory.

After analyzing and evaluating, the method using Tx Factory Simulation Software isconsidered to be the most optimal and feasible for this case study This approach will be mostsuitable when applying Kanban for the company to achieve its goals.

2 System Design Description

Figure 2 Framework design

❖ Study the system: The current picture of Scancom's robotic welding and grinding

process is observed and analyzed in this section Difficult problems create the need forimprovement.

❖ Identify problem: The goal of this segment is to identify and analyze the problem the

company is facing The company Scancom is currently facing a lack of hardware andcomponents that cause high robot downtime From there, the approaches are researchedand applied to achieve the goals.

❖ Literature review: Synthesize Kanban literature related to the challenge characteristics

of the problem It is important to review and select appropriate primary references forresearch.

❖ Develop model: Variables, objective functions and constraints are determined and

established in terms of related notations Problems which have been defined in theprevious steps are transformed into mathematical formulas and functions, and theexisting conditions into the multi-objective programming model.

❖ Collect data: Data serving for Tx Plant Simulation and Kanban application.

❖ Run model and test: Using the simulation software approach Tx Plant Simulation

creates a digitized work environment and applies Kanban to reduce robot downtime,improving productivity in many cases.

❖ Compare and analysis result: Compare new results with old results, use charts to

analyze and evaluate effectiveness, select optimal results

❖ Conclusion and recommendation: Final conclusion for the project, the effect of change,

improvement In the future, more proposals to support research in related topics areneeded.

3 Expected Result

Robot downtime due to lack

Table 1 Expected result

CHAPTER IV: PROTOTYPE DEVELOPMENT AND IMPLEMENTATION

1.Data collection

PN4084C Italica carver easy chair, ALU GPH, WNT EBR 4/4, PAR FSCPN5110D Ragusa carver easy chair, ALU BMB, WNT BLK 2/1

PN68811C Tagula stacking armchair, ALU GPHM, WNT GPH 2/2, PAR FSC MUB

1.1 Italica carver easy chair - PN4084C

Figure 3 Italica carver easy chair – PN4084C

Figure 4 Ragusa carver easy chair - PN5110D