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Transcript of Graduation Project
Reducing Operational Expenses Review of Literature Objective Performance Indicators Throughput
Operational Expenses Opportunity Cost Methodology Dependency and fluctuations The Goal - A Process of Ongoing Improvement (THIRD REVISED EDITION) By Eliyahu M. Goldratt and Jeff Cox
Theory of constraints and how should it be implemented? By Eliyahu M. Goldratt
Performance Improvement in Apparel Factories Authored By: Amit Gugnani - Senior Vice President, Fashion (Textile & Apparel), Technopak Advisors Operation Calculated Opportunity Cost for an hour in a day Real Opportunity Cost for an hour in a day Topstitch on Armhole Shoulder Topstitch Rs. 356 Rs. 155 Rs. 10620 Rs. 0 Drum-Buffer-Rope Identifying the Constraint Exploiting the Constraint Subordinating and Synchronizing
the constraint Elevating the Constraint Repeating the process Five Focusing Steps Implementing TOC on Sewing floor 1st week 3rd week 1st & 2nd Week 4th week Constraint broken, repeating the process, Identifying new constraints.
Different constraint factors for different lines.
Quality issues with Cuff profile shape
Non-availability of good tools, equipments and materials supporting production, e.g. Scissors & marking pen
Lack of supervision
Cuff interlining issues
Big sleeve placket folding machine breakdown
Overloaded button hole placket fusing machine 5th & 7th week 8th week Dispatch : 1875 Dispatch: 2397 Dispatch: 2705 Dispatch: 3060 Initial Observations Under utilized Assembly Line
Non-availability of materials supporting production
Bundle tracking not in place
High Inventory Level
No Quality assurance system in place Identifying the constraint, Collecting production data for the sub assembly lines
Calculating Overall Equipment Effectiveness on critical operations
Collar section was Identified as the constraint Section Front Back Collar Cuff Sleeve Production 3084 3502 2404 2812 2629 Availability Performance Quality OEE 58 55 81 25.8 Exploitation of Constraint
Providing Double Side Gum Tape reduced quality issues
Constant scheduling of collar section, new availability level reached 85%
Offloading some work to another floor
Routine maintenance for machines Subordinating Non-constraint activities with constraint:
Prioritized scheduling of collar section
Introduction of Serial Card
Bundle tracking Exploiting the constraints:
New Cuff run stitch profiles were made.
Providing new scissors and sufficient marking pens.
Resolving missing interlining issues.
Overhauling Sleeve placket folding machine.
Conducting supervisor training.
Replacing front placket fusing machine with a newer one with spare one of higher capacity. Elevating Constraint Exploiting, Subordinating and Syncing constraint Performance Indicators The Turnaround EOQ and reordering level Material Double Side Gum Tape Marking Pen Scissors Material Double Side Gum Tape Marking Pen Scissors Identifying Constraint - Assembly Side Seam Finish
Sleeve Top Stitch
Collar Finish Suitably sized buffer before constraint
Quality check point before side seam attach
Cross training operators to tackle absenteeism
Excess capacity on upstream and downstream
Maintenance scheduled in non-productive time OEE used to identify largest source of downtime, Inconsistent feeding and hence a lower availability.
Tools, equipments, attachments and machines were checked and if necessary were replaced.
Reducing setup time.
Capacity installation. Throughput 31,72,413 SAM
Inventory 10 days
Operational Expenses Rs. 1,38,00,000
Cost Per SAM Rs. 4.35
Lead time (sewing) 7 days
Quality Performance 7-8% DHU Throughput 40,68,342 SAM
Inventory 4 days
Operational Expenses Rs. 1,45,00,000
Cost per SAM Rs. 3.56
Lead Time (sewing) 4 days
Quality Performance 5-6% DHU Initial Final