Manufacturing and Factory Planning Project Group 5: 1) Nguyen Minh Duc. 2) Truong Thi Xuan Dao. 3) Nguyen Thi Hong Nhung. 4) Pham Dang Khoa 5) Nguyen Phi Quoc Tuan. An Introduction to the TERA PRETA TOILET
Manufacturing and Factory Planning Project
Group 5:1) Nguyen Minh Duc.2) Truong Thi Xuan Dao.3) Nguyen Thi Hong Nhung.4) Pham Dang Khoa5) Nguyen Phi Quoc Tuan.
An Introduction to
the
TERA PRETA TOILET
TERA PRETA TOILET
Terra-Preta Toilet is the toilet with the concept of ecological sanitation where human excreta and other bio wastes are transformed into pathogen-free, nutrient rich and organic matter rich hummus.
Source: http://www.tuhh.de/aww
POTENTIAL CUSTOMER
Any country in over the world where
- Problem with non-treated house water
- Problem with scarcity water
- Problem with sharing agricultural land re-source
Next
1. Define market and identify the first factory location
Define market
Define criteria
Evaluate five countries
Compare and recommend factory location
Amount of non treated house water returned to environment
Source: http://www.unwater.org/statistics.html
60%-80% Waste water in Asia and Africa flown untreated into rivers, lakes and coastal zones, threatening health, food security and access to safe drinking and bathing water.
0
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20
30
40
50
60
70
80
90
Europe Africa North America Asia
Perc
en
tag
e
Region
Back
Map of Total World Population2009-2013
http://data.worldbank.org/indicator/SP.POP.TOTL/countries?display=map
Population Of Asia: 4,379,000,000 (4 billion) hosts 60% of the world’s population
Agricultural land (% of land area)2009-2013
http://data.worldbank.org/indicator/AG.LND.AGRI.ZS/countries?display=map
Agriculture accounts for around 70 per cents of global freshwater.
Asia supports about 60 percent of the global population on only about 23 percent of the world’s agricultural land.
Back
Forecast increased global water stress in 2025
Source: http://www.grida.no
Water stress is defined as having a high percentage of water withdrawal compared to total available water in area
Back
Conclusion
SOUTH ASIAis the most potential market whereas
has the large population, Agricultural
land and amount of non treated house
water returned to environment.
This Terra Preta Sanitation system will
offer South Asia the double benefit of
reducing water consumption and
sustainable source of soil fertilizer for
agriculture.Source:
http://www.southasianconcern.org
1. Define market and identify the first factory location
Define market
Define criteria
Evaluate five countries
Compare and recommend factory location
Define criteria
1. Define market and identify the first factory location
Define market
Define criteria
Evaluate five countries
Compare and recommend factory location
Criterion 1: Electricity priceNr. Country Electricity price
(US cents/Kwh)Rank
1 Brazil 34.2 5
2 Germany 34.1 4
3 Jordan 33 3
4 South Africa 16 2
5 Vietnam 10 1
0
10
20
30
40
Brazil Germany Jordan SouthAfrica
Vietnam
US
cen
ts/k
wh
Electricity price
Source: http://en.wikipedia.org/wiki/Electricity_pricing
Criterion 2. Employees
Nr. Criteria Brazil Germany JordanSouth
AfricaVietnam
1 Minimum wage for a 19-year old
worker or an apprentice
(US$/month)
299.6 1145.5 199.9 543.1 49.9
2Unemployed person(2013)* 1,940,000 1,998,000 884,400 4,340,000 1,310,000
3 Wage and salaried workers, total
(% of total employed)66.4% 88.3% 84.3% 84.5% 34.6%
Rank1 2 5 4 3
Source: World bank,*http://www.tradingeconomics.com
Criterion 3. Logistic
Nr. Criteria Brazil Germany Jordan
South Africa
Vietnam
1Road density (km of road per 100 sq. km of land area)
18.6 180.3 7.9 30.6 48
2 Roads, paved (% of total roads) 13.5% 100% 100% 17.3% 47.6%
3 Cost to export (US$ per container) 2,215 905 825 1,705 610
4Liner shipping connectivity index (maximum value in 2004 = 100)
38.5 90.6 22.8 36.8 48.7
Rank 5 1 4 3 2
Source: World bankback
Criterion 4. Supplier • The top countries are China, Mexico,
Turkey, Brazil, and Colombia.• China leads Asia market with a market
share of 60.2%• In South America, Brazil has the
highest market share of 54.5%• The major players in the industry are
Roca Sanitario SA (Spain), ToTo(Japan), American Standard (U.S.),Kohler Group (U.S.), Eczacibasi(Turkey), Duravit (Germany), Villeroy& Boch (Germany), and CeramicaAlthea (Italy).
Nr. Country Rank*
1 Brazil 1
2 Germany 2
3 Vietnam 3
4 Jordan 4
5 South Africa 5
*Ranking ceramic sanitary ware production availability and Distance towards the China supplier
Source http://www.marketsandmarkets.com
Criterion 5. Distance to market
Nr. Country Distance to market (km) Rank
1 Brazil 14,526.33 5
2 Germany 6,222.22 3
3 Jordan 3,986.75 2
4 South Africa 8,415.75 4
5 Vietnam 3,543.52 1
0
5000
10000
15000
20000
km
Source : http://www.distancefromto.net
Criterion 6. Capital marketNr. Criteria
Brazil Germany JordanSouth Africa
Vietnam
1 Availability of financial services (1-7 best)
4.5 5.7 3.1 4.3 4.2
2
Ease of access to loans (1-7 best)3.4 3.2 2 2.9 3.3
3Legal rights index*(0-10 best) 6 7 3 7 10
Sum 13.9 15.9 8.1 14.2 17.5
Rank 4 2 5 3 1
Source: The Global Competitiveness Report 2013–2014
*Legal rights index: measures the degree to which collateral and bankruptcy laws protect borrowers’ and lenders’ rights and thus facilitate lending
Criterion 7. Communication
Nr. Criteria
Brazil Germany JordanSouth Africa
Vietnam
1
Int’l Internet bandwidth, kb/s per use 28 74.8 6.3 18.9 10
2
Secure Internet servers/million pop 54.2 1023.4 25.2 73.9 4.7
3 Accessibility of digital content[1 = not accessible at all; 7 = widely accessible]
4.9 6.1 5.4 4.8 5.3
4 Business-to-business Internet use[1 = not at all; 7 = extensively] |
5.5 5.9 5.3 5.6 5.7
Rank 3 1 4 2 5
Source : The Global Information Technology Report 2013
Criterion 8. Technology
Nr. Criteria Brazil Germany Jordan
South Africa
Vietnam
1 Availability of latest technologies[1 = not available; 7 = widely available]s
5.3 6.3 5.7 5.7 3.6
2 Quality of math & science education(1 = poor; 7 = excellent—among the best in the world)
2.6 4.7 4.7 2 4.1
3 Firm-level technology absorption[1 = not at all; 7 = aggressively absorb]
5.2 5.9 5.6 5.4 4
4 Capacity for innovation[1 =exclusively from licensing or imitating foreign companies; 7 =by conducting formal research and pioneering their own new products and processes]
3.7 5.7 3.3 3.5 3
Sum 16.8 22.6 19.3 16.6 14.7
Rank 3 1 2 4 5
Source : The Global Information Technology Report 2013
Criterion 9. Competitive regulations
Nr. Criteria Brazil Germany Jordan
South Africa
Vietnam
1 Tax regulations 16.8 19 7 0.4 8.5
2Tax rates 15.1 12.7 11.4 0.4 6
3 Policy instability 2.7 5.2 8.8 5.7 11.4
4Restrictive labor regulations 11.7 15.6 11.5 19.4 0.8
Sum 46.3 52.5 38.7 25.9 26.7
Rank 2 1 3 5 4
Per cent of responses of the most problematic factors for doing business
Source: The Global Competitiveness Report 2013–2014
Criterion 10. Political stability
Country Rank
Brazil 4
Germany 1
Vietnam 2
Jordan 5
South Africa 3
The index for Political Stability and Absence of Violence measures perceptions of the likelihood that the government will be destabilized or overthrown by unconstitutional or violent means, including
politically-motivated violence and terrorism.
1. Define market and identify the first factory location
Define market
Define criteria
Evaluate five countries
Compare and recommend factory location
Data Comparison
Criteria/country Weight Brazil Germany JordanSouth
AfricaVietnam
Electric supply price 0.15 5 4 3 2 1
Employees 0.15 4 5 2 3 1
Logistics 0.15 5 1 4 3 2
Supplier 0.1 1 2 5 4 3
Distance to market 0.1 5 3 2 4 1
Capital market 0.1 4 2 5 3 1
Communication 0.1 2 1 5 3 4
Technology agglomeration0.05 3 1 2 4 5
Competitive influencing
regulations0.05 2 1 3 5 4
Political stability 0.05 3 1 5 4 2
Total 3.7 2.5 3.7 3.10 2.05
(5=low to 1=high)
Location Recommendation
Lowest
electricity
price
Lowest
Minimum
wage for a
19-year old
worker
(US$/month
)
Nearest
distance
to market
Competitive
capital
market
High political
stability
Good logistics
2. Design of the process chain, equipment and workstation
Develop bill of material & required processes
Cluster the processes into work stations & Workstation’s value creation
Develop bill of material & required processes
1. Ceramic sanitary
2. Plastic container
8. Side cover
6. Airtight
9. Emptying pipe
7. Stirrer
11. Anti-slip wooden flat
3. Handle
4. Additive lid
5. Toilet cover
Select the degree of automation for each process step and the required equipment
Process Describe stepProcess
timeInformat
ionPower
Degree of automatio
nEquipment
AAssemble air-tight & stirrer intocontainer
67 Human Human Manual Silicon gun
B Join container to ceramic body 111 Human Human Manual Silicon gun
C Install right-side handle 67 Human Human Manual Silicon gun
D Glue emptying pipes 67 Human Human Manual Silicon gun
E Screw additive lid & toilet lid 44 Human Human Manual Srew driver
F Screw side covers 167 Human Human Manual Srew driver
G Glue sprayer fixture 17 Human Human Manual Silicon gun
H Inspecting 67 Human Human Manual NA
I Packing 122 Human Machine ManualTapping machineTrapping machine
K Cutting anti-slip (wood/metal) 113 Human Machine AutomaticAuto-cutting machine
L Deburing anti-slip (wood/metal) 73 Human Machine AutomaticAuto-deburing machine
M Glue anti-slip upon side covers 133 Human Human Manual Silicon gun
Bondit Silicon addhesive gunSource: http://www.workshopsuppliessales.co.uk
Screw driverSource: http://msgirardsonlineclassroom.pbworks.com
Equipment
Mental cutting machineSource: 1190x450x680
http://www.diytrade.com
Mental deburring machineSource: 1500x800x600http://www.stet.ch
Tapping machineSource: 1000x500http://www.sharpstrapping.com
Strapping machineSource: 1000x500http://www.signode.com
Wood cutting machineSource: 700 x 700 x 850
www.tradekorea.com
Wood deburring machineSource: 2400x900x870http://turanlar.com
2. Design of the process chain, equipment and workstation
Develop bill of material & required processes
Cluster the processes into work stations & Workstation’s value
creation
Determine workstation
Initial Demand = 5000 products/year.
Additional demand: 20680 x 2 = 41360
Demand per day = (41360+5000)/303= 153 products/day
Max time /one product = (8 hour/day x 3,600 sec/hour)/ 150
products/day = 188 sec/one product
Month Sale forecast (products) Actual sale tolerance
1 2,400 +/10%
2 3,600 +/10%
3 2,900 +/10%
4 2,700 +/10%
5 4,100 +/10%
6 3,100 +/10%
Total 20,680 (+ 10%)
Cluster the processes into work stations
Work stations regarding its value creation
Value creation Workstation 1
Describe step
- Assembling Air-tight + stirrer into container- Join container to ceramic body
Product
- Raw material: Container, airtight, stirrer, ceramic sanitary- Finish good: Main body- Spec: Main body with full airtight and stirrer, no leak and clean
Process- Assembling process- Gluing process
Equipment
- Silicon gun- Recycle bin- Electric supply
Organization- Material supplied by pallet- Finish good moved by manual conveyor belt system
Human- 1 operator- Operator with qualified to do assembling and glueing process
Work stations regarding its value creation
Value creation Workstation 2
Describe step
- Install right-side handle- Screw additive lid & toilet lid- Glue two emptying pipe
Product
- Raw material: Main body, handle, additive lid, toilet lid, pipe, screw, bold, nuts and washers, rubber sealing
- Finish good: Toilet without side cover- Spec: toilet must be seal tight, no water leaked
Process- Gluing process- Assembling process
Equipment
- Silicon gun- Screw-driver- Recycle bin- Electric supply
Organization- Material supplied by pallet- Finish good moved by manual conveyor belt system
Human- 1 Operator- Operator with qualified to do assembling and gluing process
Work stations regarding its value creationValue creation Workstation 3
Describe step- Screwing two side cover- Glue sprayer fixture
Product
- Raw material: Toilet without side cover,- 2 x cover with anti-slip, scew, sprayer fixture- Finish good:Toilet- Spec: Toilet with full 5 screws for each side of cover and sprayer fixture
Process- Screwing process- -Gluing process
Equipment
- Screw-driver- Silicon gun- Recycle bin- Electric supply
Organization- Material supplied by pallet- Finish good moved by manual conveyor belt system
Human- 1 operator- Operator with qualified to do screwing and glueing process
Work stations regarding its value creationValue creation Workstation 4
Describe step- Inspecting- Packing
Product
- Raw material: Toilet, unfold carton Box, washing cloth, packing tape, label, plastic band for packing
- Finish good: Finish Toilet- Spec: Clean Toilet, packed carton properly with full label
Process - Inspecting process
Equipment
- Silicon gun- Tapping machine- Trapping machine- Recycle bin- Electric supply
Organization
- Toilet moved by manual conveyor belt system from the previous station- Material supplied by pallet- Finish good moved by manual forklift truck
Human- 1 operator- Operator with qualified to do inspecting & packing process
Work stations regarding its value creationValue creation Workstation 5
Describe step
- Cutting anti-slip (wood/metal)- Deburing anti-slip (wood/metal)- Glue anti-slip- upon side covers
Product
- Raw material: 2m long rod- Finish good: Cover with anti-slip- Spec: Cover with enough 17pcs rod
Process
- Cutting process- Deburring process- Glueing process
Equipment
- Automatic cutting machine: parameter set by human- Edge deburring machine: parameter set by human- Silicon gun- Bin for burring material- Recycle Bin- Electric supply
Organization- Material supplied every 4 hours- Finish good store in pallets and moved by forklift
Human
- 2 operator- Operator with qualified using automatic cutting & deburring machine, be able
to do gluing process
3. Design of factory layout
Material flow in factory
Define floor space required for workstation
Layout planning and selection
- Ceramic
- Airtight
- Stirrer
- Container
- Handle
- Pipes
- Additive lid
- Toilet lid
- Sprayer fixture
1 2 3 4
5
- Material rod
- Packing stuff
- Side covers with anti-slip
Buffer
OUT
Material flow in factory
Flat rod preparation
Material flow matrix (Kg)
WS Buff 5 1 2 3 4 Out
In 3.5 25.6 1 0.1 0.2
Buffer 7.5
5 7.5
1 25.6
2 26.6
3 34.2
4 34.6
Component Unit Weight (kg)Ceramic Piece 20
Airtight Piece 0.1Stirrer Piece 0.5
Container Piece 5Handle Piece 0.1Pipe Piece 0.1
Additive lid Piece 0.2Toilet lid Piece 0.5Sprayer fixture Piece 0.1
Packing stuff Batch 0.2
Material rod Rod 0.5
Side cover Piece 2
1 2
3Buff5
3.5
In 25.6
7.5 7.5
4Out 34.6
25.6
26
.6
Material flow in factory
3. Design of factory layout
Material flow in factory
Define floor space required for workstation
Layout planning and selection
WS Machine Over head factor Space (m2)
In 24 pallet 3 floors, (1.5*2) 24*1.2 28.8
Out 2 pallet *(1.5*2) 3*2 6
1 Conveyor 1.5*0.5 0.75*3.8*1.2 3.42
2 Conveyor 1.5*0.5 0.75*3.8*1.2 3.42
3 Conveyor 1.5*0.5 0.75*3.8*1.2 3.42
4 Conveyor 1*0.5 + tap machine 1*0.5 + trap machine 1*0.5 1.5*3.8*1.2 6.84
5Wood cutting 0.7*0.7 + wood deburring 2.4*0.9Steel cutting 1.2*0.5 + steel deburring 1.5*0.8
4.45*3.8*1.2 20.292
Buffer 300 side cover (2pcs = 500*700*250 ) 150*0.5.0.7/6*1.2 10.5
Define floor space required for workstation
- Over head factor for machine area follow product structure area: 3.8- Over head factor for production control and services area: 1.2
Internal supply strategy
ComponentQty per finish
productSupply 2 times/day
(75pcs)Qty Pallet
Ceramic 1 75 10
Container 1 75 5Side cover 2 150 3
Toilet lid 1 75 1
Packing stuff1
75 1
Material rod 4 300 1Airtight 1 75 1Stirrer 1 75
1Handle 1 75Additive lid 1 75
Pipe 2 1501
Sprayer fixture1
75
Total 24
Define floor space required for workstation
3. Design of factory layout
Material flow in factory
Define floor space required for workstation
Layout planning and selection
92 m2 91 m2 93 m2
1 2
3Buff5
3.5
In 25.6
7.5 7.5
4Out 34.6
25.6
26
.6
Layout planning and selection
LAYOUT 1
LAYOUT 2
LAYOUT 3
Layout planning and selection
Layout planning and selection
Material flow matrix (Kg)
WS Buff 5 1 2 3 4 Out
In 3.5 25.6 1 0.1 0.2
Buff 7.5
5 7.5
1 25.6
2 26.6
3 34.2
4 34.6
Cost matrix ($) - Layout 2
WS Buff 5 1 2 3 4 Out Total
In 17 70 5 1 1 95
Buff 23 23
5 35 35
1 59 59
2 61 61
3 118 118
4 52 52
TOTAL 442
Distance matrix (m) – Layout 2
WS Buff 5 1 2 3 4 Out
In 4.95 2.75 5.05 7.35 6.2
Buff 3
5 4.7
1 2.3
2 2.3
3 3.45
4 1.5
Layout selection criteria:
+ Small space required
+ Small cost moving and handling
+ Suitable arrangement between WS
COST = WEIGHT * DISTANCE * UNIT COST
UNITCOST= 1$/DISTANCE
Distance matrix (m) – Layout 1
WS Buff 5 1 2 3 4 Out
In 6 7 8.15 9.3 12.05
Buff 3
5 4.7
1 2.3
2 2.3
3 2.65
4 4.7
Cost matrix ($) - Layout 1
WS Buff 5 1 2 3 4 Out Total
In 21 179 8 1 2 212
Buff 23 23
5 35 35
1 59 59
2 61 61
3 91 91
4 163 163
TOTAL 643
Cost matrix ($) - Layout 2
Buff 5 1 2 3 4 Out Total
17 70 5 1 1 95
23 23
35 35
59 59
61 61
118 118
52 52
TOTAL 442
Cost matrix ($) - Layout 3
Buff 5 1 2 3 4 Out Total
16 157 8 1 2 185
11 11
31 31
59 59
61 61
118 118
190 190
TOTAL 655
Distance matrix (m) – Layout 2
WS Buff 5 1 2 3 4 Out
In 4.95 2.75 5.05 7.35 6.2
Buff 3
5 4.7
1 2.3
2 2.3
3 3.45
4 1.5
Distance matrix (m) – Layout 3
WS Buff 5 1 2 3 4 Out
In 4.45 6.15 8.45 10.75 11.1
Buff 1.4
5 4.15
1 2.3
2 2.3
3 3.45
4 5.5
92 m2 91 m2 93 m2
4. Suppliers strategy
Delivery intervals
Organization chart
Minimal throughput-time and bottleneck work station
Customer order : 5,000 pieces per year
Sale forecast for the first half a year product quantities: (+/- 10%)
Variations demand:
- Toilet lid colour: white plastics (47%), green plastics (12%), blue plastics
(23 %), natural wood (18 %)
- The material of the flat rods: wood (35%), stainless steel (10%), plastics
(55%)
Average each month: 3900 products
1st month: 2400
products
2ndmonth: 3600 products 3rd month: 2900 products
5th month: 4100 products 4th month: 2700 products 6thmonth: 3100 products
Schedule for production running
Variations demand for 6 months
Rod Sum
Lid White (W) Green(G) Blue (B) Natural (N)
6 month 5902 869 1665 1303 9738
1month 984 145 277 217 1623
Rod Sum
Lid White (W) Green(G) Blue (B) Natural (N)
6 month 972 248 476 372 2068
1month 162 41 79 62 345
Rod Sum
Lid White (W) Green(G) Blue (B) Natural (N)
6 month 5346 1365 2616 2047 11374
1month 891 227 436 341 1896
Wood (W)
Steel (S)
Plastic(P)
Detail weekly production planning for the
first month
Rod type Lid color
White 500 200 284
Green 145
Blue 150 127
Natural 100 117
White 162
Green 41
Blue 79
Natural 62
White 200 500 191
Green 100 127
Blue 156 180 100
Natural 100 100 141
Total
quantity
Wood 1624
Steel 344
Plastic 1896
PRODUCT/WEEK1ST 2ND 3RD 4TH 5TH(2DAY
S)
Delivery intervals
Supply strategy for 1 month
(26 days)
Ceramic sanarity (piece)
Plastic containers
(piece)
Side covers(piece)
Handle(piece)
Air-tight (piece)
Stirrer (piece)
Prayer fixture(piece)
Delivery frequency 1 time/2 day 1 time/2 day 1 time/2 day 1 time/month
Dependent demand per month
3,900 3,900 7,800 3,900 3,900 3,900 3,900
Stock supplied per time 300 300 600 3,900 3,900 3,900 3,900
Supply for 1 month
(26 days)
Wooden rods(bar)
Stell rods(bar)
Toilet lid + additive lid(piece)
Plastic rods(piece)
White Green Blue Natural White Green Blue Natural
Delivery frequency
1 time/month 1 time/month 1 time/month 1 time/month
Dependent demand per month
5,063 1,076 2,056 418 800 627 900 230 440 345
Stock supplied per time
5,063 1,076 2,056 418 800 627 900 230 440 345
Rod Lid
White
Green
Blue
Natural 100
White 162
Green 41
Blue 79
Natural 62
White
Green 100
Blue 156
Natural 100
Order 1 5000
Order 2 2400+10% 166 124 32 60 47
Order 3 3600+10% 50 35 57 50 38 9 19 15 53 102 80
Order 4 2900+10%
Order 5 2700+10%
Order 6 4100+10%
Order 7 3100+10%
Product type/Day1 2 3 4 5
Wood
6 7 8
500
9 10
Steel
500
Plastic 200
209
434 110 210
Detail production planning per day
4. Suppliers strategy
Delivery intervals
Organization chart
Minimal throughput-time and bottleneck work station
General Manager
1 person
Head of office
1 person
HR + Admin
1 person
Purchasing + Shipping
1 person
Business + Planning
1 person
Account + IT
1 person
Head of production
1 person
Warehouse
2 person
Finished good
2 person
Production
8 person
Maintenance
1 person
Organization chart
4. Suppliers strategy
Delivery intervals
Organization chart
Minimal throughput-time and bottleneck work station
Bottleneck work station: WS 3 (184s)Minimal throughput-time: 718 sImprovement: Use well-trained people for decrease process time at WS3
Minimal throughput-time and bottleneck work station
Factory's principle summaryProduct Tera Preta ToiletMarket South AsiaFactory location Viet NamTactical planning Material outsourcingProduction strategy Push systemType of planning Production leveling Flow principles One piece flow Production technology Assembling and packing
Number of workstation 5Type of layout Product layoutFactory structure FunctionalFactory area size 90 m2Employee 20 peopleImproving tool 5S Methodology & quality policyNumber of shift 1 shift/day
Generally, the project is technical feasible, socially and economically
acceptable. Hence the project is worth implementing.
SUMMARY
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