PROBLEM SOLVING ASSIGNMENT 2

KOLEJ TEKNOLOGI YPC ITWEB

5503TECYPCA – PROBLEM SOLVING, TEAMWORK, PROJECT ANALYSIS AND

PREPARATION

ASSIGNMENT 2

PREPARED BY:

WONG KAH CHUN – BEM1222F3 (B121041)

CHOW KAH YAN – BEM1222F3 (B121021)

LIEW KAH MAN – BEM1222F3 (B121030)

KHOR CHIA YANG – BEM1391F2 (B131001)

KHOO KIAN LIN JACKSON – BEM1391F2 (B131033)

CHEE JIAN YAO – BEM1391F2 (B131011)

PREPARED FOR:

MISS NURUL AINI ABDUL WAHAD

SUBMISSION DATE:

29/11/2013

Contents

PART 1: REQUIREMENT OF JIT...................................1

a) Factory Organization.....................................1

b) Training, Teams, and Skills..............................2

c) Establishing the Flow and Simplifying....................4

d) Kanban Pull System.......................................5

e) Visibility and Visual Control............................6

f) Eliminating Bottlenecks..................................7

g) Small Lot Sizes and Reduced Setup Times..................8

h) Total Productive Maintenance and Housekeeping............9

i) Process Capability, Statistical Process Control, and

Continual Improvement......................................10

j) Suppliers...............................................11

PART 2: CASE STUDY..........................................12

1.0 Introduction...........................................12

2.0 Methodology............................................13

3.0 Finding and Analysis...................................14

4.0 Conclusion.............................................16

5.0 Recommendations........................................17

References:.................................................17

PART 1: REQUIREMENT OF JIT

In JIT System, there are 10 requirements that need to

accomplish. Those 10 requirements are:

a) Factory Organization

Definition

Factory Organization can be referred as production

management. Production management will do some

planning, organizing, directing, and controlling of

product activities.

Explanation

Most non-JIT factories are set up according to the

processes that are used. For example, there may be a

welding shop, a machine shop, and so on. The JIT

plant tries to setup a factory by product rather

that process. All the necessary processes for a

given product should be located together in a single

area and laid out in as compact a manner as

possible.

b) Training, Teams, and Skills

Training

Definition

Just-in-time training is training that is closely

linked to the pressing and relevant needs of people

by its association with immediate or imminent work

activities. It is delivered as close as possible to

the time when the activity is taking place.

Explanation

Types of training:

Training programmes or events can be concerned with

any of the following:

Manual skills;

IT skills

Team leader or supervisory training

Management training

Interpersonal skills (E.g. : leadership,

teambuilding, group dynamics, neuro-linguistic

programming)

Personal skills (E.g.: assertiveness,

coaching, communicating, time management)

Training in organizational procedures or

practices, eg induction, health and safety,

performance management, equal opportunity or

managing diversity policy and practice.

Teams

Definition

In term of JIT, team is a group of people who works

more efficient that normal workers.

Explanation

Skills

Definition

Skill can be defined as a learned ability to carry

out a task within an amount of time and energy.

General skills such as time management, teamwork,

and leadership would only be useful for a certain

job.

Explanation

Eight Ways to Create a Just-in-Time Workforce

Tap into talent in the cloud

Use a pool of pre-screened, reliable talent

Create an employee loan initiative

Cross-skill people so they can use different

skills on demand

Create a dedicated pool of flexible, just-in-

time talent.

Create a demand-driven talent marketplace

Restructure work in terms of smaller, discrete,

skill-based projects.

Define jobs more broadly

c) Establishing the Flow and Simplifying

Establishing the flow

Definition

Flow manufacturing means producing one single piece

of product at a time but multi-handling which

follows the process sequence.

Explanation

There are a lot of differences between lot

production and flow manufacturing.

Differences

Types of Production Process

Lot Production Flow

Manufacturing

Floor layout Job-Shaped Type U- Shaped type

Machines Same grouping

with same types

Different types

but put together

in one cell

Lot Product Large One-single piece

at a time

Inventory Easy to

accumulated

between

processes

Less / no

inventory between

processed

accumulated

Process

handling

Single-process

handling

Multi-process

handling

Worker’s Sitting while Standing while

working style working working

Worker’s skills Single-skilled Multi-skilled

Inspection At the final

stage process

At the end of

each process

Simplifying

Definition

Simplification is the JIT initiative to identify and

eliminate any unnecessary process steps through process

analysis techniques.

Explanation

Interaction between McDonalds and customers is an

example of simplification. This requirement is

consistent with the Deming Wheel. Below are the

important steps to follow:

Step 1: Standardize

Step 2: Expose the problems

Step 3: Solve the problems.

Step 4: Implement new methods

d) Kanban Pull System

Definition

Kanban is actually a Japanese word for card. For

Japanese people, they pronounced it as ‘kahn –

bahn’. Kanban can be referred as a card, flag,

verbal signals, and etc.

Explanation

Pull/Kanban is based on the concept of building

products to actual demand and not to forecast. A

company should not make large amounts of stock and

then try to sell it. Companies need to be aware of

the market place and what the customers wants. The

pull system uses visuals to signal when parts need

to be replaced. Pull Systems/Kanban control the flow

of resources in a production process by replacing

only what has been consumed. This is a customer-

order driven production schedules based on actual

demand and consumption rather than forecasting.

e) Visibility and Visual Control

Visibility

Definition

In JIT, all waste must be visible to be identified

and eliminated

Explanation

Complete visibility is essential, because successful

JIT organizations require total visibility of all

stocks, inventories and individual items at all

times, from pre-manufacturer to post consumption.

Visual Control

Definition

Visual control can be defined as a means, devices,

or mechanisms that were designed to manage or

control our operations (process) so as to meet the

following purposes:

Make the problems, abnormalities, or deviation

from standards visible to everyone and thus

corrective action can be taken immediately

Display the operating or progress status in a

easy to see format.

Provide instruction.

Convey information.

Provide immediate feedback to people.

Explanation

Implementing visual control in the plant can be

taken immediately to correct the problems, reduce

manufacturing cost, reduce possible waste, shorten

production lead time and thus keep the delivery due

date, reduce inventory, ensure a safe and

comfortable working environment, and increase

company's profit.

f) Eliminating Bottlenecks

Definition

A bottleneck is a phenomenon where the performance

or capacity of an entire system is limited by a

single or limited number of components or resources.

The term bottleneck is taken from the 'assets are

water' metaphor. As water is poured out of a bottle,

the rate of outflow is limited by the width of the

conduit of exit—that is, bottleneck. By increasing

the width of the bottleneck one can increase the

rate at which the water flows out of the neck at

different frequencies. Such limiting components of a

system are sometimes referred to as bottleneck

points.

Explanation

Bottlenecks are easy to identify in manufacturing

and production environments, but challenging to

correct. Automation alone will not eliminate

bottlenecks to achieve optimum performance.

Addressing every step in the process and the

contributing factors enables real process

improvements to occur.

g) Small Lot Sizes and Reduced Setup Times

Small Lot Sizes

Definition

Small Lot Sizes can be defined as small work-in-

process inventories, small final product

inventories, or quick response to changes and

defects.

Explanations

The use of small lot sizes ensures that production

can occur in a constant manner. In terms of

producing smaller amounts, small lot sizes are more

consistent in JIT system. This requirement becomes

more important when it is involved in a mixed

production. The work-in-process

Setup Time Reduction

Definition

Setup time reduction can be defined as a lean effort

that uses standardization to reduce the time it

takes to perform retooling. 

Explanation

Setup time reduction enables JIT to replenish while

raising its productivity, lowering the inventory,

slashing lead time, and improving quality. A quick

setup can drive into a smaller lot sizes, make

additional capacity available, reduce scrap and

rework, and increase flexibility. World Class

performance ultimately relies on many techniques and

disciplines working together, but it must all begin

with fast setups.

h) Total Productive Maintenance and Housekeeping

Total Productive Maintenance

Definition

Total Productive Maintenance (TPM) which is one of

the key concepts of Lean Manufacturing, challenges

the view that maintenance is no more than a function

that operates in the background and only appears

when needed.

Explanation

The objective of TPM is to engender a sense of joint

responsibility between supervision, operators and

maintenance workers, not simply to keep machines

running smoothly, but also to extend and optimise

their performance overall. The results are proving

to be remarkable.

Housekeeping

Definition

5S Housekeeping can be defined as the value

enhancement for the customer within the

organizational systems or processes.

Explanation

The elements of 5S comprises of 5 simple steps:

Seiri means sorting out. This step helps to

remove unnecessary items as appropriate.

Seiton means systematic arrangement. This step

shows prefix a place for everything and put

everything in place.

Seiso means spic and span. This step shows that

cleaning is not for beautification alone but

with a sense of purpose.

Seiketsu means serene atmosphere or sanitizing.

This step can provide environmental cleanliness

and standardization. Besides that, it can

develop standards and evaluation criteria.

Shitsuke means self-discipline and training.

This step can create awareness of all 4Ss and

train to implement.

i) Process Capability, Statistical Process Control, and

Continual Improvement

Process Capability

Definition

Process capability can be defined as the capability

of a process to meet its purpose as managed by an

organization's management.

Explanation

This process is necessary under 3 principle reasons:

To enable the preparation of product design

specification which can be achieved by existing

processes

As an aid for process control, to ensure that

the process continues to satisfy these

requirements continuously under operating

conditions

As a base of continuous process improvement

Statistical Process Control

Definition

Statistical process control (SPC) is a ways of

quality control which uses statistical methods. SPC

is used for monitoring and controlling a process

that will operates with its full potential.

Explanation

SPC must be practiced in 2 phases:

Phase 1: Initial establishment of the process

Phase 2: Regular production use of the process

Need to decide the period to be examined,

depends on the parts that are used in the

manufacturing process

Continual Improvement

Definition

A continual improvement process is a process that

can either improve products, services, or processes.

These efforts can either seek "incremental"

improvement over time or "breakthrough" improvement

all at once, depends on the situations.

Explanation

JIT system can reduce the numbers of inventory

within the system. Besides that, JIT system also can

reduce costs that are associated with carrying and

handling by using this process. In addition, the

system can easily expose production problem so that

they can be easily addressed. Furthermore, the

system will keep reducing the number of kanbans

until the problem is exposed. Moreover, the

continual improvement process can temporarily return

inventory to former level. Therefore, the JIT system

can use this continual improvement process to

correct the problem and start removing kanbas again.

j) Suppliers

Definition

Suppliers can be defined as JIT partnership.

Explanation

There are some characteristics of suppliers:

Few

Nearby

Repeat business

Analysis to enable desirable suppliers to

become or stay price competitive

Competitive bidding mostly limited to new

purchases

PART 2: CASE STUDY

1.0 Introduction

An analysis had been made since the last two months when our

lecturer, Miss Aini handed the case study of the assignment to

the author and his group members. The case study is regarding

to improve the company’s supermarket by reducing the

complaints from customer or fulfill the customer’s wish.

The supermarket is a regional chain that located in Western

Australia named, Tip top Markets where Karen Martin is the

shop manager of one of the stores. She received a large number

of complaint records especially on Tuesdays that she obtained

the records from the store’s customers at her store’s customer

service desk for the last eight Tuesdays. However, there were

changes implemented to reduce out of stock complaints,

improving store maintenance and reducing checkout line pricing

problems on the fifteenth of July.

The author and his group members are asked to analyse the data

to provide recommendations for improvements by analysing the

data using a Pareto diagram that include a cause and effect

diagram for the leading category on the Pareto diagram.

Prepare a check sheet and run charts for the analysis too.

The full report provides the not only a list of

recommendations that addresses customer complaints but it

contains the introduction of the case study, methodology,

finding and analysis, conclusions and recommendations for

further usage.

2.0 Methodology

The methodologies of the case study are discussions on meeting

or gathering all members on a specific day where all members

have to reach on a punctual date and time. After this, members

are taking note and discussions were started regarding the

case study. During the discussions, notes, graph and sketches

about the case study were brought up. All members are to give

their opinions and recommendations (include the advantages and

disadvantages) to the store. The author then assigned two

members to do more specific analysis, two members to

reconstruct the diagrams, graphs and charts in computer

system, one member to give explanations or details about the

diagrams, graphs and charts. The author himself will do all

general details like introduction, table of contents,

conclusion and references. The whole case study’s works are

discussed among all members and the tasks are divided equally

within the author and his members.

3.0 Finding and Analysis

Based on the data that has given, we have analysed and done

some research on it by using check sheet, run charts, and a

Pareto-diagram. Below are the following details that have

used:

a) Check Sheet

Complaint

Date

Jun-01

Jun-08

Jun-15

Jun-22

Jun-29

Jul-06

Jul-13

Jul-20

Jul-27

Out Of Food Taste

II IIII III IIII IIIIII

IIIIIIII

IIIIII

IIIIIIIIIII

IIIIIIII

Food Problem

IIIIII

IIIIII

IIIII IIII II II I

CheckoutProblem II II I III I II II

Overcharge Problem

III III IIIIII I II II IIII III I

Hard To Find Thing

II I III I I

Store Problem III IIII III III II IIII

II IIII IIII IIIIIIII

Clerk Problem I

Cashier Problem I I I II I

b) Pareto-Diagram

Complain

Frequen

cy

Cumulative

frequency

Cumulative

percentage

Out of food

taste 61 61 33%

Store problem 40 101 55%

food problem 29 130 71%

overcharge 26 156 85%

Checkout

problem 13 169 92%

Hard to find

thing 8 177 96%

Cashier

problem 6 183 99%

Clerk problem 1 184 100%

184

c) Run Charts

Complain

aver

age

Food out of

taste 6.8

food problem 3.2

Checkout problem 1.4

overcharge 2.9

Hard to find

thing 0.9

Store problem 4.4

Clerk problem 0.1

Cashier problem 0.7

4.0 Conclusion

As a conclusion, analysing the data can help the the manager

to find out the problem of the Store and solve it immediately.

It helps business identify performance problems that require

some sort of action. It can be viewed in a visual manner,

which leads to faster and better decisions. It also allows for

the identification of important trends. Therefor data analysis

is an important process to improve the company performance.

5.0 Recommendations

Have an action plan for customer complaints. When a customer

complains, what she is really doing is telling you how you can

improve your service. Have a system in place so customer-

service employees can document complaints. Create a customer-

grievance form your employees can fill out when a customer is

unhappy. Management should collect the grievance forms

periodically and review them to identify recurring complaints.

Survey all customers for feedback on their buying experience.

There are a number of ways to do this. You can have survey

forms that can be filled out and dropped in a container. Or

you can hand customers a survey form as they leave the store,

offering incentives such as a 10 percent discount if they

bring or mail it back. You could also have an online survey

that offers a printable store coupon when completed. Your

survey form can be as simple as the customer choosing a level

of satisfaction from one to five in any given area of service,

but leave space for additional comments.

Make adjustments based on customer feedback and complaints.

Knowing what customers are complaining about will not help you

reduce complaints unless you are willing to make changes. Have

a brainstorming session with managers and employees to see

what changes can be made to prevent customer’s

dissatisfaction.

Train employees to provide excellent service. A well-treated

customer is less likely to complain than a poorly treated one.

The last thing a business owner wants is to have a customer

become frustrated by a rude employee. Employees should be

trained to treat customers with excellence and be given some

leeway in their ability to address customer needs.

References:

http://tejc.tripod.com/jit.htm

http://people.cpp.com/rs/cpp/images/eight_ways.pdf

http://www.scribd.com/doc/54442223/21/Standardization-

Simplification

https://www.uop.edu.jo/Repository/39/Handbook%20of%20Human

%20Resource%20Management%20Practice_Part52_Part5.pdf

http://link.springer.com/static-content/lookinside/432/chp

%253A10.1007%252F3-540-58435-8_184/000.png

https://dspace.lib.cranfield.ac.uk/handle/1826/3446

http://www.metoffice.gov.uk/media/pdf/p/a/OH_Chapter3.pdf

http://rusi.org/downloads/assets/8foulkes.pdf