Productivity Improvement of Carton Manufacturing Industry by Implementation of Lean Six Sigma, ECRS, Work Study, and 5S A Case Study of ABC Co., LTD
Productivity Improvement of Carton Manufacturing Industry by Implementation of Lean Six Sigma, ECRS, Work Study, and 5S A Case Study of ABC Co., LTD
Productivity Improvement of Carton Manufacturing Industry by Implementation of Lean Six Sigma, ECRS, Work Study, and 5S A Case Study of ABC Co., LTD
Abstract
The objective of this study is to improve productivity by means of lean six sigma, ECRS, work study, and 5S in carton
manufacturing industry. The study was conducted from November 2017 to August 2018 from a case study of ABC Co., Ltd. The data
were collected from managers and supervisors and the problems were analyzed by brainstorming, cause and effect diagram, and pareto
chart. Referring to the results, it was found that production problems occurred from a delayed process in cutting and Die-cut department,
messy area in warehouse, delayed and erroneous transportation. Considering the measurement process, the measurement method could
be changed from using hand to using pattern. The standard time was then reduced from 21.17 minutes per 100 pieces to 18.10 minutes
per 100 pieces, accounting for 14.50 percent of improvement. The lost cutting time was caused by excess movement of worker while
sitting and working. So, when the movement was changed from sitting to standing, the worker felt less exhausted and could reduce the
standard time from 19.32 minutes per 100 pieces to 15.05 minutes per 100 pieces, accounting for 22.10 percent of improvement. The
messy in warehouse had caused erroneous retrieval as well as delayed and erroneous transportation. Once it was improved by cleaning,
classifying products and areas with sign boards, the results showed that the cost of loss was reduced from 45,900 THB per quarter to
21,600 THB per quarter, accounting for 52.94 percent of improvement. Employee satisfaction level was increased from 3.20 to 4.60,
accounting for 43.75 percent of improvement.
Keywords: Brainstorming; Cause and Effect Analysis; ECRS; Lean Six Sigma; Productivity; Work Study; 5S; Continuous
Improvement.
Corresponding author: Piyachat Burawat, Rajamangala University of Technology Thanyaburi, Thailand. E-mail:
[email protected].
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2 Literature Review referred to as making the change stick. Once the solution has
Literature review will be gainful for advocating the model solved the problem, the improvements must be standardized
described in detail in the next section. and sustained over time (4).
of doing things. Second, continuous improvement can be seen to maintain the clean workplaces. During cleaning, it checks
as generic characteristics which focuses on the value of the cleanness of machine, workplace and floor, tightness of
making continuous incremental changes (5). Users emphasize equipment, cleanness of lines, pipes, sources of light, current
on making small changes, modifying processes, and eventually data, legibility and comprehensibility of delivered
creating a large cumulative effect (5). Although each small information, etc. Indispensable is the taking care of and
change may not have a measurable impact, the cumulative maintenance of personal tidiness of the operator. Next,
effect can be quite profound. Third, continuous improvement Seiketsu (standardize) aims to be constant place for things,
is viewed as improving method for both products and constant rules of organization, storage and keeping cleanness.
processes which involve employees from all positions and all Worked out and implemented standards in the form of
departments in the company (14). The objective is to eliminate procedures and instructions permit to keep the order on the
wasteful practices (17) and achieve lean production (23). workplaces. Standards should be very communicative, clear
Employees continuously chip away the fatty tissues of firm and easy to understand. Regarding this during preparation and
and create lean production processes (17). Finally, continuous improving, it should involve all participants of the process on
improvement is a kind of meditation technique that reveals its the given workplace; it means direct workers. The group
profundity only through ceaseless repetition and change (21). knows the best specificity of its own activities, and process of
The Deming’s quality cycle or PDCA-cycle is used to elaboration and after that, usage gives them possibility of
coordinate continuous improvement efforts. The completion of understanding the essence and each aspect of the operation. In
one cycle continues with the beginning of the next. A PDCA- the aim of assuring all the easy access, obligatory standards
cycle consists of four consecutive steps or phases. First, plan should be found in constant and visible places. Finally,
phase (P) is an analysis of what requires to be improved by Shitsuke (sustain) aims to be automatic realization of the
taking into consideration areas that hold opportunities for above-mentioned rules (19).
change, e.g. decision on what should be changed. Second, do Implementing the idea of the 5S will demand from workers
step (D) is an implementation of the changes that are decided the compact self-discipline connected with implementing and
on in the Plan step. Third, check phase (C) is a control and obeying the rules of regularity in cleaning and sorting. It leads
measurement of processes and products in accordance to to increasing the consciousness of employees, and decreasing
changes made in previous steps and in accordance with policy, the number of non-conforming products and processes,
goals and requirements on products. Lastly, act step (A) is an improvements in the internal communication, and through this
adoption or reaction to the changes or running the PDCA-cycle to improvement in the human relations.
through again, keeping improvement on-going (4).
3 Research Methodology
2.6 5S Practices The objective of this study is to improve productivity in
The 5S practice begins each programme of improvement. carton manufacturing industry. The study was conducted from
It is the tool for helping the analysis of processes running on November 2017 to August 2018 from a case study of ABC Co.,
the workplace. The 5S is the methodology of creation and Ltd. The data were collected from the managers and
maintaining well organized, clean, highly effective and high supervisors and the problems were analyzed by brainstorming,
quality workplace. Its result is the effective organization of the cause and effect diagram, and pareto chart. The current
workplace, reduction of work’s environment, elimination of productivity is measured by the ratio between current output
losses connected with failures and breaks, improvement of the divided by current input. After measuring current productivity,
quality and safety of work (7). The philosophy of the 5S has the analyzed and improved process were developed by using
its roots in Japan developed by Osada in the early 1980s (9). by means of lean six sigma, ECRS, work study, and 5S. Next,
The name 5S is the abbreviation of five Japanese words the productivity after improvement was measured by the ratio
including Seri, Seiton, Seiso, Seiketsu, and Shitsuke. between output after improvement, divided by input after
First, Seri (sort) is aimed to sort, organize the workplace, improvement. Meanwhile, productivity growth was calculated
and eliminate unnecessary materials. Through the suitable by the ratio between the difference of productivity after
sorting, it can identify the materials, tools, equipment and improvement and current productivity, divided by current
necessary information for realization the tasks. Sorting productivity. In addition, employee satisfaction was assessed
eliminates the waste material (raw materials and materials), by questionnaires (5 is extremely satisfied and 1 is extremely
nonconforming products, and damaged tools. It helps to dissatisfied). Descriptive statistic was used to analyze
maintain the clean workplace and improves the efficiency of employee satisfaction data.
searching and receiving things, shortening the time of running
the operation. Second, Seiton (set in order) aims to visualize Current Output
Current Productivity=
of the workplace and place for everything (e.g. painting the Current Input
floor helps to identify the places of storage of each material or
transport ways, drawing out the shapes of tools makes it
possible for the quick putting aside them on the constant Productivity after improvement=
Output after improvement
places, colored labels permit to identify the material, spare Input after improvement
parts or documents etc.). It should execute the segregation of
things and mark the places of their storing. Third, Seiso (shine) (Productivity after improvement - Current
Productivity Growth= Productivity)
aims to clean and remove wastes or dust. Regular cleaning Current Productivity
permits to identify and to eliminate sources of disordering and
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Journal of Environmental Treatment Techniques 2019, Volume 7, Issue 4, Pages: 780-793
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Journal of Environmental Treatment Techniques 2019, Volume 7, Issue 4, Pages: 780-793
their arms while operating machine, resulting in frequent addition, the number of crashing accident was significantly
breaks during working hours. Thus, the movement was reduced.
changed from sitting to standing, and the workers felt less
exhausted and could reduce the standard time from 19.32
minutes per 100 pieces to 15.05 minutes per 100 pieces,
accounting for 22.10 percent of improvement.
of delivered and remained products for all delivery. At the end performance which can be applied in any industry as well as
of working day employees must count actual quantity which is any size of company. It can be regarded as the promotion of
equal to remained quantity and the last recorded one. Defect the improvement techniques amongst the employees and as a
products occurred from compressed, scratches, and lacerates training method for the employees. The findings demonstrated,
defects which are eliminated by arranging and simplifying however, that there are obstacles in the effective
carrying process. Employees must check and manage all implementation of the improvement techniques for any
shipment products. The heavy weight products are located at improvement purpose. The most significant obstacles
the bottom, while the light weight products are always located identified are related to depletion of communication, gap
on top. In addition, the appropriate paper was placed between between the top management and shop floor operators and also
lays of the easily damaged products. Once it was improved by the insufficiency of training and consciousness of this activity
correcting quantity and reducing defects, the results showed amongst the employees. Thus, the full advantages of the
that the cost of loss was reduced from 45,900 THB per quarter improvement techniques cannot be experienced in the business
to 21,600 THB per quarter, accounting for 52.94 percent of sector until all the drawbacks related with application of the
improvement. In addition, the level of external customers improvement techniques are recognized, completely
satisfaction is significantly increased. comprehended and addressed. Continuous evaluation in all
Continuous improvement is known as Kaizen in Japanese. levels of firms is one major driver to change the improvement
The application of the Kaizen principles supposes a continuous culture of the company. This evaluation should be emphasized
communication between the manager and the employees on the progress and improvement of quantity and quality of
(vertical communication) and between the employees on the products, level of morale and satisfaction of employee, level
same hierarchical level (horizontal communication). The of quantity and quality of communication, financial
application of the Kaizen principles involves no major performance, and customer satisfaction.
expenses, but only more attention to details and practical ways
to do things better and more efficiently. The directly 6 Recommendations
productive employee is particularly encouraged so that they There are several recommendations as followed:
can suggest and make improvements (22). After a detailed 6.1 Japanese management and TPS techniques require a
analysis, the results have noticed that, even in the areas where top-down approach that becomes part of the corporate fabric.
no improvements are needed such as warehouse area, there are Teaching TPS techniques cannot take place in a classroom or
still plenty of possibilities to improve. A good management of through seminars, but where the operations actually take place.
human resources in the organization is one of the strategic To be effective, everyone must be fully aware of the various
objectives of the organization which should be clearly defined forms that waste can take and be constantly vigilant of any
and accepted by all members. The continuous improvement opportunities to attack and eliminate these wastes. Senior
principles are the resistance structure that should be built on, executives must regularly walk through the operations,
so that we can get to a continuous and step by step observing the activities, asking questions, and demonstrating
improvement of the company performance. Problems should their commitment to the process. Too often, companies treat
not be connected to employees because blaming employees these processes as programs that can be started and stopped as
does not solve the problem. Problem solving should use feed- needed. They seldom give it the necessary support and time to
back techniques. become part of the corporate culture.
The results demonstrated that the implementation of 5S, 6.2 Though principle of Japanese management and TPS
work study, ECRS, Lean Six Sigma, and continuous techniques are related to no major expenses, only more
improvement techniques can be applied in small scale attention to details and practical ways is required to do things
industry. These techniques involve with Toyota Production better and more efficiently together with continuous
System (TPS) which focuses on the active involvement of all improvement over time. Thus, it can be applied in both
employee categories, aiming to small but continuous manufacturing and services business. Due to the lower
development. Lean manufacturing is one of the options to resource investment, it can be implemented in any company
reduce non value-added activity (wastes) and improve like small, medium, and large company.
operational efficiency of the organization. The efficient 6.3 There are several Japanese management and TPS
implementation of 5S technique leads to improvement in techniques. This study applied some of them, i.e. Lean Six
environmental performance and thus primarily related to Sigma, ECRS, work study, Kaizen, and 5S, the results are
reduction of wastes in manufacturing. It promotes neatness in satisfied. It is necessary for all businesses to analyze and select
storage of raw material and finished products, reduction in suitable tools for their situations which may be similar or
accident, and increase of awareness and moral of employees dissimilar to this study, for instance just in time (JIT), lean
(22). Regarding ECRS concept, all 4 principles are production, six sigma, push-pull system, Jidoka, Poka Yoke,
unnecessary to be applied at the same time depending on Kamban, 8 wastes, single-minute exchange of die (SMED),
problem analysis and limitations of each company. The results Hejunka, Genchi Genbutsu, visualization, respecting
showed that even though this study applied only three employees, team and suggestion system.
principles (eliminate, rearrange, and simplify), the 6.4 Though Japanese management and TPS techniques
improvements are in satisfactory level. are pervasive implementation in worldwide business,
The findings demonstrated that Lean Six Sigma, ECRS, European and Western management and techniques are
work study, Kaizen, and 5S can be seen as an effective widespread applied as well. Since European and Western
technique that can reduce waste and improve business management are involved with high technologies, machines,
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and innovations, which require high level of investment, a 10. Lammon D. An examination of productivity in the utility industry
business needs to calculate break event point and payback (thesis master of Arts). New York: Empire State College, State
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11. Mogensen AH. Common sense applied to motion and time study.
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The author would like to express appreciation to all Factory Management and Maintenance, July 1949; 66-88.
participants who gave priceless information, including ABC 13. Osada T. 5S’s: five keys to a total quality control environment.
Co., Ltd., for the permissions that enabled the author to Tokyo: Asia Productivity Organization, 1991.
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successfully carry out this study.
company. Success, July/August, 80, 1991.
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