Maximum Utilization of Resources of Vision Technologies

1 | P a g e

Vision Technologies

Maximum Utilization of the Resources in Different Production areas of

Football

Submitted By:

Ayesha Khalid (12121002) MBA Marketing

Iqra Kausar (12121001) MBA Marketing

Hassan Tariq (12121003) MBA Marketing

Haider dar (12121014) MBA Marketing

A project in partial fulfillment of the requirements

for the degree of Business Administration

Department of GIFT Business School

GIFT University, Gujranwala

2014

2 | P a g e

Certificate

It is Certified that final project titled “Maximum Utilization of the Resources in Different

Production areas of Vision technologies” has be prepared by the students ,Ayesha Khalid

12121002, Iqra Kausar 12121001, Hassan Tariq 12121003 and Haider Islam dar 12121014

has been approved for submission.

Mr. Irfan Mehmood

Project Supervisor

3 | P a g e

Declaration Form

We Ayesha Khalid 12121002, Iqra Kausar 12121001, Hassan Tariq 12121003 and Haider

Islam dar 12121014 hereby declare that Project titled “Maximum Utilization of the

Resources in Different Production areas of Vision technologies” has been submitted by us in

partial fulfillment of the requirements for the degree of MBA and this project present carried out

at GIFT University Gujranwala campus and aims encouraging discussion and comments. The

observation and viewpoints expressed are the sole responsibility of the group members. It does

not necessarily represent position of the GIFT University Gujranwala Campus or its faculty. We

also understand that if evidence of plagiarism is found in our project at any stage, even after the

award of a degree, the work may be cancelled the degree revoked.

Printing Date: 13.4.2014

Ayesha Khalid

Iqra Kausar

Hassan Tariq

Haider Islam dar

4 | P a g e

Department of GIFT Business School

Project Approval Sheet

Viva- Voce Examination

Title of Project: Maximum Utilization of the Resources in Different Production areas of Vision

technologies

Name of Students:

Ayesha Khalid (12121002) MBA Marketing

Iqra Kausar (12121001) MBA Marketing

Hassan Tariq (12121003) MBA Marketing

Haider dar (12121014) MBA Marketing

Approved By :

Mr. Irfan Mehmood

Supervisor

Mr. Abid Awan

Internal Examiner

Mr. Umar Mukhtar

Internal Examiner

Mr. Zikria Mian

Director Project

Mr. Asim Ilyas

Head of Department

5 | P a g e

Dedication

We dedicate our project to our family and friends because without their prayers we would not be

able to accomplish this piece of work. We also dedicate this project to everyone including

respected faculty for GIFT University who supported us in different phases of the project.Special

dedication goes to Mr. Irfan Mehmood, Mr. Abid Awan, Mr. Umar Mukhtar and Mr. Jamil.

6 | P a g e

List of Tables

Table Number & Heading Page No

Table 1 Division of labor 11

Table 2 Time Calculation For Each Activity 19

Table 3 Data for OEE Calculation 19

Table 4 OEE Calculation 20

List Of Figures

Figure Number & Heading Page No

Figure 1 Process Flow 8

Figure 2 GANTT Chart 13

7 | P a g e

Contents 1. Executive Summary .....................................................................................................................9

2. Acknowledgements ................................................................................................................... 10

3. Scope of project ........................................................................................................................ 11

4. Company .................................................................................................................................. 11

5. Vision Products ......................................................................................................................... 11

Footballs ...................................................................................................................................... 11

Handballs ..................................................................................................................................... 12

Futsal ........................................................................................................................................... 12

Special make ups .......................................................................................................................... 12

6. Process Flow Diagram ................................................................................................................ 13

7. Type of flow .............................................................................................................................. 14

8. Process Flow ............................................................................................................................. 14

Material Procurement ................................................................................................................... 14

Lamination ................................................................................................................................... 14

Cutting ......................................................................................................................................... 14

Printing ........................................................................................................................................ 14

Punching ...................................................................................................................................... 14

Sorting ......................................................................................................................................... 15

Stitching ....................................................................................................................................... 15

Quality Check ............................................................................................................................... 15

Bladder Inspection ........................................................................................................................ 15

Molding........................................................................................................................................ 15

9. Bottleneck ................................................................................................................................ 15

10. Labor utilization..................................................................................................................... 16

Division of Labor ........................................................................................................................... 16

11. Total Production .................................................................................................................... 16

12. Desired Production ................................................................................................................ 17

13. Capacity Utilization ................................................................................................................ 17

14. Process time.......................................................................................................................... 17

Throughput Time .......................................................................................................................... 17

Cycle Time .................................................................................................................................... 17

15. Process Flow for 12000 Footballs per day ................................................................................ 18

8 | P a g e

Material Procurement ................................................................................................................... 18

Lamination ................................................................................................................................... 18

Cutting ......................................................................................................................................... 19

Printing ........................................................................................................................................ 19

Punching ...................................................................................................................................... 19

Sorting ......................................................................................................................................... 19

Stitching....................................................................................................................................... 19

Quality Check ............................................................................................................................... 19

Bladder Inspection ........................................................................................................................ 19

Molding........................................................................................................................................ 20

16. Recommendations ................................................................................................................. 20

17. Conclusion ............................................................................................................................ 21

18. Glossary ................................................................................................................................ 22

Calculation for cycle time .............................................................................................................. 22

9 | P a g e

1. Executive Summary

This project is based on operations management. The basic purpose was to increase efficiency

and effectiveness of the entire system thus increasing productivity and to reach the goal of

making twelve thousand footballs in a day. We visited the production unit of Vision technologies

thoroughly to examine the overall processes involved in football making and identified the

bottleneck and defects if any in the system. After that we made a comprehensive process flow

chart identifying the different processes involved in production. Few processes were done on

machines while others were manually done. We identified that the flow was repetitive type of

flow which was following a proper sequence of steps. We identified the flaws in the process flow

Then we checked the time taken by each operation and identified the bottleneck. The problem

with the bottleneck was that all other operations were standardized but the printing section

involves use of different colors according to the order demanded. We also calculated the number

of workers used in each operation to check whether they are underemployed or over employed.

We identified that few process have optimum labor but few process involved excess labor and

few involved less labor. This would help in suggesting whether they should increase the labor

our decrease it thus maximizing utilization while minimizing cost. We also calculated the

capacity utilization by checking the present capacity and best operating level that they could

achieve. This suggests how much capacity they need to increase in meeting the desired targets.

We calculated the time required to complete each operation and come to know the throughput

and cycle time. We explained it with help of Gantt chart. After that we also applied the

improvement potential tool to suggest any improvements in the effectiveness of machines.This

was achieved by adding time required for each operation. This also helped in identifying the

bottleneck. After doing all the calculations and identifying the different processes we gave some

recommendations which would help in achieving the desired target of making 12000 footballs in

a day with optimum labor and machinery used so that overall cost would be less.

10 | P a g e

2. Acknowledgements

This project would not have been possible without the support of ourParents, Sir

Irfanmehmood, Mr. Jamiland most ImportantlyAllah the Great gave us enough courage to

complete this project.

It is a pleasure to thank those who made this project possible. It is an honor for us to do this

interesting and valuable project because we have learnt a lot from the project and our practical

knowledge about operations.

We are indebted to our group fellows to support usthroughout this project. Our gratitude and

thanks go to everyone mentioned in the project.

11 | P a g e

3. Scope of project

It is an operations management project and involves finding defects in the present process flow

production and how to increase their production using minimum labor and time. It would

increase their efficiency and effectiveness thereby increasing overall productivity. In this way

this project would be helpful in identifying the bottlenecks from the system and suggesting ways

and alternatives to the system for improvement and better functioning. By finding flaws in the

process flow we would be able to recommend changes to the process flow and this would help in

achieving the daily target of 12000 footballs. Mission Statement

4. Company

Incorporated as a private company in 2000, Vision technologies is located in Pasrur road Sialkot

Today VISION Technologies Corporation generates close to USD 1.3 million worth of business

every month. It seeks to become leading ethical manufacturer of athletic balls. It has an

international client’s from Europe, East Asia and North America.It ensures high quality, cost

efficiency and timely delivery.

Currently VISION employs around 300 workers in its different production and administrative

areas excluding stitching

"VISION Technologies Corporation seeks to become the leading ethical manufacturer of athletic

balls in the country, servicing an expanding base of satisfied, international clients.

VISION ensures high quality, cost efficiency and timely delivery, through professional

structures and innovative business processes, to extend its role as a model of corporate

responsibility.

5. Vision Products

The main product made by vision technologies is football which is exported all over the world

and is of FIFA quality best suited to players.

Footballs

Visions footballs are crafted to highest standards of performance.First they design each football

aroundtested concepts that guarantee stability, endurance and control in all playing conditions.

12 | P a g e

Like the all-time favorite 8-wing airblock bladder and high-abrasion surface treatment of poly-

coat. Then they add in cutting edge innovations that make sure you stay ahead in the game.

From now on all their footballs come with the PoP panel system and the VeT multi-layered

construction platform that gives you that ultra-smooth surface others only dream about.

Handballs

As the industry’s leading handball maker, VISION’s has learnt from the masters. Theirnew range

is designed to satisfy the world’s most experienced players. A revolutionary new microfiber

material forms the performance-enhancing platform for their 3rd generation handball. A unique

panel shape gives better grip and greater accuracy off the playing surface.

The super-soft casing is firm enough to respond to the finest technique. Combined with

trusted core componentslike the 8-wing airblock bladder and non-marking surface treatment, this

handball just can’t be beaten

Futsal

VISION is in the vanguard of the Futsal explosion with unique products designed in

collaboration with Europe’s leading designers.

With a finely calibrated bounce particularly tuned to high-abrasion indoor surfaces, their Futsal

is built around a reliable butyl core that helps shape retention and imparts flight accuracy within

the controlled movement necessary for the game.

The special high density poly-casing is further augmented by the resilient surface treated with

special color-coat. Their unique product translates the controlled passion of Futsal into

excitement like no other.

Special make ups

No other company is more equipped to respond to your special branding demands than VISION.

Our 25-years in the hand-stitched ball business are characterized by innovations that are now

industry norms. Whether it’s from-scratch development for the world’s leading brand or refining

excellence for heritage clubs infootball’s heartland, we’ve done it all.

We understand the game, the product, and your needs like no other company in Sialkot,

the global capital for hand-stitched balls. Bring us your ideas and we’ll make them work.

13 | P a g e

Process Flow Diagram

Selected Product

We have selected standard football which is having the greater demand. This football contains 8

wing air block bladder and high abrasion poly coat surface treatment. This is professional

category football exported to international clients.

R & D (new product Design)

R & D (sample production )

R & D (samples dispatching to

prospective clients)

Work Order receipt

Raw materials and component planning

Raw Material stock Availability

Valid Quotation

Inquiries Launch to vendors

Quotation entries and generating

comparative statement

Generation of purchase order

Expediting plan and monitoring

Material receiptMaterial inspection

Material issuance request from

lamination sectionLaminating process

Lamination readiness notice

Panel cutting

Cut panels readiness notice

Random Inspection

Ball issuance to printing contracter

Printing Consumables

receipt

Printing processPrinting readiness

notice Random Inspection

Issuance kits sorting

Material receipt From store

Kits sorting process

Issuance of kits to sticthinh=g contracter Stitching process Initial Inspection

OKWashing and Final

Inspection FaultyBall packingExport

documentation

Material issuance request for sticthing

Random Inspection

Sheets Readiness notice

Ball receipt from contractor

Payment receipt from client

No

Yes

No

Yes

No

Yes

Yes

No

14 | P a g e

6. Type of flow

The flow here is repetitive process flow because there is some product variety but the volume is

high and products follow the same path with stable and predictable production volume. The lead

time and the set up time is short. The core of the manufacturing line stays the same and

specifications are changed for different products as needed. Repetitive manufacturing allows the

company to easily return to a prior product run if it needs to produce more to order.

7. Process Flow

Material Procurement

The material used in football making makes the football quality different. It can be made from

PVC sheets or fabric sheets. A total of almost 37 rolls are made per day which is further

laminated.

Lamination

It has 10 stations having 20 workers and 6 helpers so total of 26 labors are working here. 1000

sheets are laminated per day. 2 heating rooms are utilized. 1 heating room has capacity of drying

400 sheets per day. Almost 6.6 balls can be made from single sheet. It is a three day process.

Cutting

Cutting is done with the help of machines. They are utilizing 13 machines for cutting the

laminated sheets. 75 sheets could be cut by a single machine. 19 persons are working with these

machines. 6 persons have the responsibility of sorting out the pieces.

Printing

Printing area has 70 stations as 2 to 3 type color printing done on average. In this way almost

8000 footballs are printed per day.

Punching

There are 11 punching machines. 1000 to 1200 footballs could be punched by single machine.

15 | P a g e

Sorting

Sorting area has 7 stations out of which 5 stations are for sorting the football pieces and 2

involve bladder pasting.

Stitching

Stitching is done by outsourcing. They are almost 500 suppliers. Demand for hand stitched

footballs are more so it is done in stitching centers. Quality checks are also done by visiting the

centers.

Quality Check

There is 24 hour hold and can be checked any time at any department.

Bladder Inspection

It is done in 2 sets. First set involve 7 persons and check 4000 bladders per day. The second set

involves 5 persons checking 2500 bladders per day.

Molding

They have 26 molding machines. Molding is necessary so that there is no difference seen in

quality and shape of footballs and all footballs look alike as they are hand stitched. Almost 8

persons work here and mold 450 balls per person.

8. Bottleneck

The printing process takes the larger time so it is bottleneck in the system. There are other

processes which took more time but they could not be considered as bottlenecks because they

were held without use of labor and machines. The problem with the printing process is the

variation of designs and different colors demanded. This also causes the production to seize at

various points and overall production is less depending on order.

16 | P a g e

9. Labor utilization

Labor works on the numbers of hours worked and get wages for their work.Total labor involved

in production is 307 which are distributed among different areas of their expertise as shown in

the figure below:

Division of Labor

Packing 19

Materials Procurement 23

Panel Sorting 29

Bladder Inspection 18

Panel Punching 37

Delivery and Receive 6

First Inspection 35

Quality assurance 64

Washing 32

Lamination 26

Balls repair 5

Follow up 10

Bladder Pasting 9

Warehouse and Logistics 8

Balls Molding 9

Out of these process we have highlighted those processes where there is over employed labor.

Other processes have labor at optimum level.

10. Total Production

The company is now working 8 hours a day and the production for a day is 6000 footballs. This

production varies sometimes depending upon the type of order also.

17 | P a g e

11. Desired Production

Company wanted to double its daily production from 6000 to 12000 footballs which is dependent

on different processes involved in the production Unit. So changes are required in the process

flow to achieve this target.

12. Capacity Utilization

Capacity utilization rate reveals how close a firm is to its best operating level and can be

expressed as

Capacity utilization ₌ Capacity used/ Best Operating Level

≈ 6000/ 12000 ≈ 0.5 or 50 %

It means that plant is currently running at 50 % capacity. So we have to suggest ways in meeting

the best operating level with efficiency plus effectiveness.

13. Process time

Throughput Time

By adding time of different processes we get the manufacturing lead time or through put time

which is equal to 14 minutes for the first football.

Cycle Time The time for each successive unit of football is 3 min 40 seconds

14. Gantt Chart

A Gantt chart, commonly used in project management, is one of the most popular and useful

ways of showing activities (tasks or events) displayed against time.

18 | P a g e

15. Process Flow for 12000 Footballs per day

Material Procurement

There are two stations for the material inspection but only one station is used. They can use both

the stations to complete the demand for the production of 12000

Lamination

The Lamination department has 15 stations out of which 10 stations are working. A total of 1200

sheets are made from which almost 7000 footballs can be made. If they utilize the remaining

stations then the target of 12000 footballs can be achieved here. Now oven is used for 8 hours but

it can be used overnight. This will double production to 12000.

One station production per day =120 sheets per day

15 stations will produce = 120*15 = 1800 sheets per day

1 sheet = 6.6 footballs

0

150

200

210

212

245

250

391

397

437

467

527

808

813

120

30

50

10

2

33

5

141

6

40

30

60

281

5

0 200 400 600 800 1000 1200

Material Procurement

lamination

Bladder Inspection

Oven heating

Bladder pasting

Cutting

Sorting Cut pieces

Printing

Material Sorting

Punching

Stitching

Checking & molding

washing and final…

Ball packing

total time

time per activity

19 | P a g e

1800 sheets = 1800*6.6 = 11880 footballs per day ≈ 12000 per day

Cutting

The cutting section has 13 machines. They are utilizing full capacity here by making 75 sheets

per machine so a total of 975 sheets are made per day. They need to install 11 more machines to

reach target of 1800 sheets per day and 12000 footballs per day.

Printing

Printing process is a bottleneck because it involves different orders with different demands of

colors and designs. They will have to recruit more labor in order to meet the production

recruitment.

Punching

In the punching section the labor is more and has workers with them. It has 22 machines out of

which 11 machines are working and these are enough to make 12000 footballs per day. They can

reduce labor here to reduce some cost.

Sorting

Sorting area has 7 stations out of which 5 stations are for sorting the football pieces and 2

involve bladder pasting. 10 stations more will fulfill the demand for the 12000 per day.

Stitching

Stitching is done by outsourcing. New suppliers will be needed.

Quality Check

There is 24 hour hold and can be checked any time at any department.

Bladder Inspection

There are two stations one giving the production of almost 4000 bladder checks per day. They

need to install one more station which will give them production of 12000.

20 | P a g e

Molding

They have 26 molding machines. Molding is necessary so that there is no difference seen in

quality and shape of footballs and all footballs look alike as they are hand stitched. Almost 8

persons work here and mold 450 balls per person.

16. Improvement Potential Tool

We have used Overall Equipment Effectiveness because it is a universally accepted method for

measuring the improvement potential of a production process.

OEE takes into account all losses (Down Time Loss, Speed Loss, and Quality Loss), resulting in

a measure of truly productive manufacturing time.

It is based on three factors which include availability, performance and quality.

OEE = Availability x Performance x Quality

OEE = 73.41 %

So there is improvement potential of further 27 %

Overall Equipment Effectiveness measures how close we are to perfect production

(manufacturing only good parts, as fast as possible, with no down time). Monitoring our OEE

score on its own is not all that helpful to improving production. The true value of OEE comes

from understanding the underlying losses: Availability Loss, Performance Loss, and Quality

Loss. By focusing on these losses, and more importantly, by taking action to reduce these losses,

our OEE score will naturally improve.

17. Recommendations

As printing is the bottleneck here so they should consider using machine printing for

whole sheet.

Machine printing will be helpful in printing whole sheet then they will use automatic

cutting machine for whole sheet. This will increase their production, reduce the labor cost

and bottleneck time will be reduced.

21 | P a g e

18. Conclusion

We can conclude that the goal of 12000 footballs can be achieved if certain changes in the

process flow can be done. We can also say that operations management is helpful in increasing

the productivity of the system. Furthermore increasing or decreasing the number of workers at

the appropriate places would be helpful in maximizing utilization of resources. Managing

operations help in reaching the desired targets by use of tools like OEE, etc

22 | P a g e

19. Glossary

Calculation for cycle time

Lamination

A single sheet time ₌ 3 min 21 sec

Total time in seconds₌ 201seconds

Footballs made from a single sheet₌ 6.6

So 1 football timing ₌201 sec/ 6.6 ₌30 sec

Drying Sheets

1 heater dries 400 sheets per day

So total footballs make from single sheet = 6.6

So football material dried by 1 heater = 6.6 * 400 =2640

So 3 heaters can dry footballs = 7920

Time for drying sheet takes = 5 sec

Bladder Checking

Checking one bladder require ₌ 1 min 50 sec

Deflating time ₌ 1min

Cutting

Cutting single sheet ₌3 min 35 sec

Total time in sec ₌215 sec/ 6.6 ₌ 33 sec

Material Sorting

A single ball sorting material takes 6 sec.

23 | P a g e

Printing

Printing process is complicated and there is time variation depending on order but generally there

is 2 to 3 color scheme order for a particular football.

Painting 16 pieces in football requires time₌ 47 sec

If 3 colors involved then total time ₌47*3 ₌ 141 sec

So time in minutes₌2 min 21 sec

Punching

There are 16 pieces to be punched together for a single football and these pieces require time ₌

40 sec.

Back Receiving

The balls after being stitched are racked together. A single rack can hold up to 100 balls. One

rack is filled ₌ 4 to 5 min

Time for one ball ₌0.41 sec

Holding

These balls are kept in racks for 24 hours to assure that there is no air leakage.

Washing

Process of washing has some series of steps like in a conveyer belt. Overall time for 1st football

is 4 min 41 sec. After that next football is cleaned every second.

Quality Check

It takes 1 min to check whether football is faulty or of low class.

Average faulty footballs are 2% in 100 racks so 10 footballs are mostly faulty.

Faulty football requires 40 sec of 1 ball, deflating and packing

24 | P a g e

Packing

Packing single ball requires 5sec

Time Calculation for Each Activity

Data for OEE Calculation

Item Data

Shift Total Length 540 Minutes

Meal Break 60 minutes

Downtime 40 minutes

Ideal Run rate 17 pieces per minute

Total Pieces 6000

Reject Pieces 10

Activity Total Time

(sec) Time per activity

(sec)

Material Procurement 0 120

lamination 150 30

Bladder Inspection 200 50

Oven heating 210 10

Bladder pasting 212 2

Cutting 245 33

Sorting Cut pieces 250 5

Printing 391 141

Material Sorting 397 6

Punching 437 40

Stitching 467 30

Checking & molding 527 60

washing and final inspection 808 281

Ball packing 813 5

Through put time 13.55

≈ 14 min

25 | P a g e

Planned production Time Shift length- Breaks 480

Operating Time Planned production time- downtime 440

Good Pieces Total Pieces-reject pieces 5990

Availability Operating time / Planned production time 0.916667

Performace (Total Pieces/operating time)/ideal run rate 0.802139

Quality Good pieces/ total pieces 0.998333