t A&f borifjsltoI - K PERFORMANCE IMPROVEMENT IN APPAREL MANUFACTURING USING LEAN TECHNIQUES LIBRARY UNIVERSITY OF MORATUWA. SRI LANKa MORATUWA by R.M.V.S. RATNAYAKE This thesis was submitted to the Department of Textile & Clothing Technology of the University ofMoratiiwa In partial fulfillment of the requirements of the Degree of \ Master of Philosophyii ■ ? University of Moratuwai ; 93885 Department of Textile & Clothing Technology University of Moratuwa October 2009 9388S CCD'' 'CO h)lorJh bll W Ill- C>5 (MS) n n rJjooj Declaration: I hereby certify that the work incorporated in this thesis was solely carried out by me under the supervision of Dr. HSC Perera and Dr. WDG Lanarolle. No portion of work in this thesis or any material incorporated in it has not been submitted for any University or Institution for any other academic qualification. RMVS Ratnayake (Candidate) Dr. HSC Perera (Supervisor) Dr. WDG Lanarolle (Supervisor) i i Abstract The labour productivity in the Sri Lankan garment industry is found to be rather low compared to that of some of its competitive countries. On site investigation revealed that the workflow gets unbalanced due to many reasons despite it is balanced at the commencement of a new style. The Work In Progress (WIP) and its fluctuation arc found as two apparent factors reducing the labour productivity in addition to disorganized set-up activities during style changes. The significance of the problem of high WIP and its high fluctuation are investigated through the data collected from 42 garment manufacturing lines in 14 different factories. Hypothesis testing on these data revealed that this is a common problem across all 14 factories under this study. Root cause analysis on WIP fluctuation disclosed the major contributing factors to the problem. Identifying each sewing line in few ‘sub-cells', where a team of operators focuses mainly on one part of the garment helped addressing most of the problems identified in the root cause analysis. An algorithm to balance the production line and the sub-cells is devised. The concept was successfully implemented in a garment manufacturing company in Sri Lanka. The evaluation of the performance indicators revealed that the production efficiency has increased by more than 10% while drastically reducing the defect percentage. The operator absenteeism too has significantly reduced. This may be due to the fact that the operators’ motivation to work and their income are increased as disclosed by the results of the questionnaire survey among operators and the supervisors. High, but inevitable, style changes aggravate the problem of low labour productivity as drastic production efficiency drops are experienced during the changeover. The quick changeovers concepts commonly found in lean manufacturing and newly proposed five- step set-up procedure streamlined the set-up activities. The implementation of the proposed set-up procedure made it possible to increase the average first day production efficiency of the factory over 80% and a significant reduction in the set-up times as compared with the statistics before implementation. u Acknowledgements I owe my deepest gratitude to the supervisors of my research Dr.Chandana Perera and Dr.Gamini Lanarolle, who guided me in the correct pathway in achieving the objectives of this research. Their patience in reading and correcting the thesis is highly appreciated. I wish to pay my tribute for the efforts taken by the members of the progress review committee, Dr.Julian Nanayakkara, Dr. Udaya Kahangamage, Mr.Raj Prasanna and Dr.Sanath Jayawardena towards the successful completion of my research work, proficiency and the experience of Dr.Julian Nanayakkara as the Chairman of the committee towards the latter part of the research helped me immensely in presenting this research more scientifically. The unmatched I wish to thank Prof. Terrence Perera of Sheffield Hallam University and Dr.Nirmali de Silva of the Department of Textile & Clothing Technology in forming a link between the two institutions and to thank the British Council, Colombo, for funding this educational link. My visit to Sheffield Hallam University funded by this link helped me in collecting a huge amount of research materials, and to develop links with professionals in the field of lean manufacturing. Mr.James Marsh is one such academic who advised and helped me where needed, and I wish to offer my sincere thanks to him. Special thanks are due to Mr.J.N. Gunasena and Mr.Ruwan Malaka of Hirdaramani Industries Pvt. Ltd at Kahathuduwa; without their commitment, the implementation of the research would not have been possible. I also express my gratitude to the staff of the garment manufacturing companies who assisted me in collecting data and filling questionnaires and by providing necessary information. I wish to thank the University of Moratuwa for giving me this opportunity for doing this postgraduate research. I am grateful to Ms Samanthi Mathugama and Ms.Padma Yatapana of the Mathematics Department for the assistance given in statistical analysis of the data. The continuous support and the encouragement of the Heads of Department of Textile & Clothing Technology during my research period and the staff, specially Mr.Ranga Abeysooriya are remembered and I wish to express my gratitude to all of them. Finally, I wish to thank my beloved mother, husband and two sons, encouragement and patience 1 would not have been able to complete this research. Without their iii Table of Contents Page Declaration Abstract Acknowledgement Table of Contents List of Figures List of Tables Abbreviations i ii in IV viii x XIV 1. Introduction 11.1 Background 1Textile & Garment Industry in Sri Lanka Main concerns for remaining competitive 1.2 Lean manufacturing as a performance improvement tool 1.3 Statement of the problem 1.4 Objectives 1.5 Significance of the research 1.6 Outline of the research 1.1.1 1.1.2 5 6 6 7 7 2. Literature Review 2.1 Introduction 2.2 Lean Manufacturing 2.2.1 The development of Toyota Production System and Lean Manufacturing 2.2.2 Lean Principles - the five phase implementation model 2.2.3 Eight wastes in manufacturing 2.3 Lean manufacturing tools and techniques 2.3.1 Value Stream Mapping 2.3.2 Just In Time (JIT) philosophy 2.3.3 Group Technology and Cellular Manufacturing 2.3.4 Set-up time reduction 2.3.5 Total Productive Maintenance (TPM) 2.3.6. Total Quality Management (TQM) 2.3.7 Kanban systems 2.3.8 Work Standardization 2.3.9 Visual controls and audio signals 2.3.10 The principles of 5S 2.3.11 Poka-yoke 9 9 10 11 12 14 14 20 21 25 29 34 37 38 39 40 42 IV 422.3.12 Jidoka 2.3.13 Heijinika 2.3.14 Kaizen 2.4 Simulation in lean implementation 2.5 Benefits of Lean Implementation Problems in lean implementation 2.7 Summary and Discussion 42 42 43 44 452.6 46 3. Scope of the Study 3.1 Introduction 3.2 Productivity 3.3 Lead time 3.4 Reliability 3.5 Flexibility 3.6 Supply chain 3.7 Garment manufacturing process 3.8 Summary of scope and limitations 48 48 50 52 53 53 54 59 4. Methodology 4.1 Introduction 4.2 Literature survey 4.3 A survey on wastes in garment manufacturing lines 4.4 Identifying operations and wastes in garment manufacturing 4.5 Cellular manufacturing model 4.6 Implementation of the system 61 62 62 62 63 64 5. Analysis of the current state of a production line in a selected garment factory 5.1 Introduction 5.2 Layouts of garment manufacturing lines 5.3 Investigation of the current practice 5.3.1 Reveals of the study 5.4 Is the problem of WIP fluctuation common to other production lines? 5.5 Generalization of the problem 5.5.1 Analysis of variance of WIP and CV% 5.6 Set-up activities during style changes 5.7 Conclusion 66 66 68 71 73 74 75 78 v i_ 6. Cellular manufacturing model and work-groups to make the flow smooth 6.1 Introduction 82 826.2 Cellular Manufacturing 856.3 Sub-cells (Proposed Cellular manufacturing system) 6.3.1 86Definition of the proposed sub-cell Developing the sub-cell concept Algorithm for balancing the operations in sub-cells Graphical representation of the sub-cell manufacturing model Cell Oriented incentive plan 6.3.2 86 6.3.3 96 6.3.4 111 6.3.5 1 12 6.4 Discussion 117 7. Set-up Reduction 7.1 Introduction 7.2 Survey on style changes 7.3 Set-up activity analysis-identifying internal and external set-up activities 119 119 122 Visual tool for set-up reduction (Set-up Circle) 7.3.2 Current practice in the set-up process in garment manufacturing 7.4 Investigation into the set-up procedure 7.4.1 Analysis of the set-up data 7.5 Minimizing the set-up time 7.5.1 Streamlining the set-up operations through better planning 7.5.2 Set-up circle for garment manufacturing 7.5.3 An alternative approach for set-up operations in garment manufacturing 7.3.1 122 123 124 128 129 131 134 135 Discussion7.6 137 8. Implementing sub-cell concept and the set-up procedure 8.1 Introduction 8.2 Current layout of the production line 8.3 Designing sub-cells 8.3.1 Visual controls in sub-cells 8.3.2 Motivation of workgroups 8.3.3 Evaluation of the performance of sub-cells 8.4 Implementing the five step set-up procedure 8.4.1 Evaluation of the five step set-up procedure 8.4.2 First day production efficiency 8.4.3 Cost saving from the set-up improvement 138 138 141 157 158 159 162 164 167 167 vi 1688.5 Discussion 9. Results & Analysis 9.1 Introduction 9.2 Statistical testing on efficiency, quality and absenteeism 9.3 Evaluation of the five-step set-up procedure First day production efficiency Statistical analysis of the reduction in times of set-up elements 9.4 Evaluating the system through questionnaire 9.5 Summary 170 170 172 9.3.1 172 9.3.2 174 177 181 10. Conclusion 10.1 Introduction 10.2 High WIP and its fluctuation 10.3 Sub-cell concept 10.4 Style changes 10.5 Set-up reduction 11.6 Aptness of the research findings across the entire industry 11.7 Research contributions and future directions 183 183 183 185 185 187 187 188List of References Appendices Appendix A1 Appendix A2 Appendix A3 Questionnaire on waste Value Stream Map of the current state Calculated times to move between two sharable workstations Alternative solution for back work group System evaluation forms 203 206 208 Appendix A4 Appendix A5 210 212 Vll List of Figures page 222.1 Layouts of straight and cellular systems 272.2 The effect of set-up operations on the line output 2.3 32Impact of six big losses to major competitive factors 3.1 The causes and their significance to late deliveries of the selected garment factory for year 2006 53 3.2 Supply chain in manufacturing 53 3.3 The basic processes involved in a garment factory 54 3.4 Sample making process 55 3.5 Processing times of spreading and cutting against the number of plies. The current layout of workstations of a garment manufacturing line 57 5.1 66 5.2 WIP between work stations 68 Capacity times and the takt time5.3 69 WIP fluctuation over the time between workstations5.4 70 Cause and effect diagram of WIP fluctuation5.5 72 Work In Progress between workstations of production line -165.6 74 Work In Progress between workstations of Production Line -185.7 74 Cause and effect diagram for poor line efficiency5.8 78 Comparison of learning effects when operations are shared and when not shared (5 cycles) 6.1 95 Comparison of learning effects when operations are shared and when not shared (100 cycles of operation change) Straight line layout Zigzag layout with the centre table for material handling U-shaped material flow layout with centre table for material handling U-shaped material flow layout with no centre table U-Shaped machine layouts 6.2 95 6.3 100 6.4 100 6.5 101 6.6 101 6.7 101 vm 1076.8 Layout to calculate operator motion times and distances Flow chart of the algorithm for balancing operations of sub-cells Cellular manufacturing model to address the problems mentioned above Set-up circle (proposed) for set-up reduction Significance of each set-up element as a percentage of the total set­ up time Five-step model for set-up in garment manufacturing 1106.9 6.10 111 1227.1 1287.2 7.3 133 7.4 Set-up circle representing the set-up in the garment industry 134 7.5 Set-up circle for the new set-up approach 135 8.1 The current layout of the production line and the operations carried 139 out 8.2 Layout of the front sub cell 145 8.3 Layout of the back sub-cell 149 8.4 Layout of the Assemble 1 sub cell 152 Layout of the Assemble 2 sub-cell8.5 155 8.6 The layout of the whole production line 156 Visual Controls in controlling production in Cells8.7 157 Display board showing the team identifications8.8 158 WIP between workstations of Line No.2 before and after the formation of Cells and the WIP of Line No.3 after implementation and the linear trend lines Monthly efficiencies before November 2006 and the daily efficiencies in November of production Line No.2 Customized Microsoft VISIO stencil for layout planning 8.9 160 8.10 162 8.11 163 ix List of Tables page 1.1 Improvements achieved by implementing lean 5 2.1 Equipment and product matrix 15 2.2 Product family analysis 16 2.3 Set-up reductions achieved by motor car manufactures 29 3.1 Comparison of labour and machine cost in the garment industry 49 Style changes in the Sri Lankan garment Industry3.2 52 The causes and their significance to late deliveries of a selected garment factory for year 2006 Cost of fabrics cutting for different number of plies in a lay 3.3 52 3.4 57 Average WIP, Standard Deviation and CV% of WIP between workstations Average WIP per workstation and the CV% of WIP values of 42 production lines of 14 different garment manufacturing companies ANOVA table for testing WIP level 5.1 70 5.2 75 5.3 76 ANOVA table for testing WIP fluctuation5.4 77 Operators’ waiting times during style change5.5 79 The efficiency of the production line from the first day of a new style until the end of the style Comparison of different cell types against true cellular manufacturing units 5.6 80 6.1 84 Piece numbers and operation times with learning effects when operation are shared and not shared Arbitrarily selected SMVs 6.2 94 6.3 97 SMVs of operations and sum of SMVs6.4 99 Possible operations to be combined under step 1 of the algorithm6.5 100 MTM times for foot, leg, hand and body movements6.6 105 Allowances added and their percentages depending on the work environment and complexity of working 6.7 106 x. : 6.8 Motions and times when moving from B to A 106 6.9 Motions and times when moving from A to B 6.10 Distances and times between workstations for straight line layout 107 107 6.11 Distances and times between workstations for zigzag with the centre table 6.12 Combined pitch times when three operations are grouped 6.13 108 109 Distances and times required to move within a group for different layouts when three operations are combined 110 7.1 Results of the survey on style changes 120 7.2 Changeover times 120 7.3 ANOVA to test whether change over times are high Set-up operations during set-up of production Line No. 1 Summarized observations for set-up operations of six production lines 122 7.4 124 7.5 125 7.6 Activities during the set-up period and the persons involved 126 Summary of the set-up times and idling times7.7 128 Set-up activities, possibility of converting to external and the suggestions to minimize 7.8 129 . WIP between workstations (of line no.2 producing men’s short)8.1 140 The operations and their SMVs of the front workgroup8.2 142 Operations combined and their combined SMVs for front work group 8.3 143 Possible combinations for front sub-cell and the combined SMV times 8.4 144 Remaining operations and their times after step 3 of the algorithm The operations and their SMVs of the back, workgroup Operations combined and their combined SMVs for back work group Operations with SMV less than and more than the pitch time (for 147 back workgroup) 8.5 145 8.6 146 8.7 147 8.8 xi 8.9 Operations of back cell remaining after the second step of the algorithm 8.10 Operations of back cell remaining after the third step of the algorithm 8.11 The operations and their SMVs of the assemble I work group 8.12 Operations combined and their combined SMVs of Assemble I work group 8.13 Operation combinations selected to share in work group Assemblel 8.14 Operations and their SMVs of the assemble 2 work group 8.15 Operations combined and their combined SMVs of Assemble 2 work group 8.16 Operations with SMV less than and more than the pitch time (for Assemble 2 workgroup) 8.17 Operations of back cell remaining after the third step of the algorithm 148 149 150 151 152 153 153 154 154 WIP between workstations of Line No.2 and the standard deviations before and after the formation of cells 8.18 161 8.19 Times of the set-up activities after implementing the five-step set-up procedure 8.20 Summary of the set-up times of each element and its percentage improvement after implementing the five step set-up procedure 8.21 First day Efficiencies before and after implementing the five- step set-up procedure 9.1 Factory efficiency, defects and operator absenteeism data before and after implementing data 9.2 Average and Standard deviation of efficiency, defect and absenteeism: before and after implementation 9.3 Average and Standard deviation of the first day efficiency 9.4 Monthly first day production efficiencies and the number of style changes before and after implementing the set-up procedure and the sub-cells 9.5 Monthly first day production efficiencies 165 166 167 170 171 172 173 173 Xll : i_ 9.6 Correlation coefficients of the set-up elements Summary of set-up times before and after implementing the five- step set-up procedure Data on operator and machine idling times for statistical analysis The ratings given by supervisors and operators on the effectiveness of the sub-cell concept Summarized data on the evaluation of the sub-cell system by the operators Chi-square test and Spearman correlation on operators’ evaluation of the system 174 9.7 176 1769.8 9.9 178 9.10 179 9.11 179 Xlll Abbreviations ANOVA Analysis of Variance Acceptable Quality Level Button Attaching Button Hole sewing Board Of Investment Computer Added Design Computerized Method Analysis Computer Method of Sequencing Operations for Assembly Lines of Assembly Planning and Line Balancing Cost Per Minute Coefficient of Variation Double Needle Lock Stitch European Productivity Agency First In First Out Feed Off the Arm Free On Board Gross Domestic Product General Sewing Data Group Technology International Labour Organization Joint Apparel Association Forum Just In Time Learning Forgetting Curve Model Multi Fibre Agreement Method Time Measurement Make To Order No Foreign Exchange No Touch Exchange Dies Over Lock Overall Equipment Effectiveness One Touch Exchange Dies Product Flow Analysis and Simplification Toolkit Power Integration Model Predetermined Motion Time System Recency Model Single Minute Exchange Dies AQL BA BH BOI CAD CMA COMSOAL-PLB CPM CV DNLS EPA FIFO FOA FOB GDP GSD GT ILO JAAF JIT LFCM MFA MTM MTO NFE NTED O/L OEE OTED PFAST PIM PMTS RC SMED xiv ■SMV SNLT Standard Minute Value Single Needle Lock Stitch Statistical Process Controller Time Measurement Unit Total Productive Maintenance Through Put Time U.S. International Trading Coorporation Variance Ratio Value Stream Mapping Work In Progress World Responsible Apparel Production SPC TMU TPM TPT USITC VR VSM WIP WRAP xv