IE 505 (Systems Engineering)

Prelim Groupwork No. 1

Name: LACANILAO, Laurice Andrea V.
MICUA, John Oliver E.
SANGLE, Don Emmanuel
SAPNU, Rose Anne C.
SENA, Argyl P.
URQUIOLA, Andrea Jane T.

Date: September 1, 2016

IE51FA1

This is based on the Project Design entitled Production Efficiency Improvement in the Injection
Molding Facility of Atlanta Industries Incorporated: A TRIZ Approach by Marie Lou Bano, Darrel
Cedron, Marjorie Navales, Darzi Jules Pinga year 2016.
I.

Problem definition and need identification

Low productivity in production center 1 is analyzed using problem analysis tools (See
Appendix C). Based on the fishbone diagram, low productivity is caused by several factors
affecting man, machine, environment, material and methods. Apparently, the problem lies in
the inefficient facility layout and the absence of standard processes.
Problem Statement
In designing processes and facilities, the proponents have identified that PC-1 (uses
injection molding) have the lowest efficiency rate among the main production centers. Most
of the problems are caused by poor work environment and lack of standard process for the
conversion of scrap into good output. The proponents aim to improve the production area.

II.

System design and feasibility analysis

A. Identify the functions the system must perform

With the problems identified in the production center 1 of Atlanta Industries Inc., the
proponents prepared three designs to increase the efficiency of the scrap conversion. To
address this objective, the proponents incorporate solutions through methods engineering,
facilities design and inventory monitoring system to each design. Facility planning and design
concepts were used to streamline the scrap conversion process to make the production line
more efficient.
The proponents prepared three designs with the following titles:
Design 1: Simple U-Shape Product Pick-Up Route with Manual Tagging and Intranet-based
Production Monitoring System using MS Excel
Design 2: Double Dependent U-Shape Product Pick-Up Route with QR Code Inventory System
Design 3: Embedded U-Shape Product Pick-Up Route for Packing with Andon Board Monitoring
System
Summary Matrix of the Designs

Table A1 Summary Matrix of the

Designs
Existing

Manual listing
of inventory
99 Manpower
1 Large Granulator
187 Sacks per day
consumed
18.7% - good
output generated
from scrap raw
materials
3 machines on
elevated
platform

Design 1

Design 2

Facility Re-layout
Facility Re-layout
Manual Tagging QR Code System
and Intranet 74 Manpower
based Inventory
12 Medium
System using
Granulator
MS Excel
s
66 Manpower
216 Sacks per day
25 Small
consumed
Granulator
21.6% good
s
output generated
240 Sacks per
from scrap raw
day consumed
materials
24% good
Platform
output generated
provided for
from scrap raw
operators in each
materials
machine
All machines on
elevated
platform
(included in
construction)

Design 3

Facility Re-layout
Andon

Board
System
99 Manpower
2 Large Granulators
192 Sacks per day
consumed
19.2% good output
generated from
scrap raw materials
3 machines on
elevated
platform

Table A2 Assumed costs

Constraints
Productivity
- Output per day
Economic
- Total Capital
- Depreciation Costs
Environmental
- Total Energy Consumption
Sustainability
- Life Span of the
granulators (YRS)
Ergonomic
- Visual Angle
Return on Investment (Months)

Design 1

Design 2

Design 3

240

216

192

21,782,901.53
5,555.56

22,894,281.53
5,400.00

25,655,516.53
7,200.00

1126.14KW

1091.64KW

1028.64KW

70.87

67.86

70.87

1.67 Degrees

2 Degrees

1.76 Degrees

0.642949286

1.2211934

6.946037497

B. Identify at least three (3) possible system level design approaches or alternatives that can be
pursued in response to the need
Design Proposal 1: Single U-Shaped Product Pick-Up Route with Manual Tagging and Intranet-Based
Production Monitoring System using MS Excel
Design considerations for design 1 aim to maximize efficiency of the production in three ways:
(1) adapting the U-Shape layout for product pick-up as part of the of packing process (2) installation of
25 small granulators for more efficient conversion of scrap to raw material and (3) establishing a
production monitoring system using manual tagging and intranet-based using MS Excel. This aims to
solve the low efficiency rate of the PC-1 and at the same time reduce scrap produced.
Summary Matrix for Design 1 with Comparison to Existing
Table B1 Summary Matrix for Design 1
Existing

Manual listing
of inventories
99 Manpower
1 Large Granulator
187 Sacks per day
consumed
18.7% - good
output generated
from scrap

Design 1 Specifications

Constraints

Facility Re-layout (U-

Productivity
- Output per day

shaped product pickup route)

Manual Tagging and
Intranet-based
Production
Monitoring System
using MS Excel66
Manpower
25 Small Granulators
240 Sacks per day
consumed
24% good output
generated from scrap
Elevated platform for
machines (included
in construction)

Economic
- Total Capital
- Depreciation Costs
Environmental
- Total Energy
Consumptio
n
Sustainability
- Life Span of the
granulators
(YRS)

Details
240

21,782,901.53
5,555.56

1126.14KW

70.87

Ergonomic
- Visual Angle

1.67 Degrees

Return on
Investment Months

0.642949286

Design Proposal 2: Double Dependent U-Shape Product Pick-Up Route with QR Code Inventory System
Design considerations for design 2 aim to maximize efficiency of the production in three ways:
(1) adapting the Double Dependent U-Shape layout for product pick-up and transfer to the delivery area
(2) installation of 12 medium granulators for more efficient convertion of scrap to raw material and (3)
establishing an inventory management system using QR Code System. This aims to solve low efficiency
rate of the PC-1 and at the same time reduce scrap produced.
Summary Matrix for Design 2 with Comparison to Existing
Table B2 Summary Matrix for Design 2
Existing

Manual listing
of inventories
99 Manpower
1 Large Granulator
187 Sacks per day
consumed
18.7% - good
output generated
from scrap

Design 2 Specifications

Facility Re-layout

(Double Dependent
U- shape product
pick-up route)
Machine
placement
following Double
Dependent U-Line
QR Code System
74 Manpower
12 Medium Granulators
216 Sacks per day
consumed
21.6% good output
generated from scrap
raw materials
Platform provided
for operators in each
machine

Constraints
Productivity
- Output per day
Economic
- Total Capital
- Depreciation Costs
Environmental
- Total Energy
Consumptio
n
Sustainability
- Life Span of the
granulators
(YRS)
Ergonomic
- Visual Angle
Return on
Investment Months

Details
216

22,894,281.53
5,400.00

1091.64KW

67.86

2 Degrees

1.2211934

Design Proposal 3: Embedded U-Shape Product Pick-Up Route with Andon Monitoring System
Design considerations for design 3 aim to maximize efficiency of the production in three ways:
(1) adapting the Embedded U-Shape layout for product pick-up and transfer to the delivery area (2)
installation of 2 large granulators for more efficient convertion of scrap to raw material and (3)
establishing an product monitoring system using Andon Monitoring System. This aims to solve low
efficiency rate of the PC-1 and at the same time reduce scrap produced.
Summary Matrix for Design 3 with Comparison to Existing
Table B3 Summary Matrix for Design 3
Existing

Manual listing

Design 3 Specifications

Facility Re-layout

of inventories
(Embedded U-Shape
Product Pick-up
99 Manpower
Route)
1 Large Granulator
187 Sacks per day Andon Board System
99 Manpower
consumed
2 Large Granulators
18.7% - good
192 Sacks per day
output generated
from scrap raw
consumed
materials
19.2% good output
generated from
scrap raw
materials
3 machines on
elevated
platform

Constraints
Productivity
- Output per day
Economic
- Total Capital
- Depreciation Costs
Environmental
- Total Energy
Consumptio
n
Sustainability
- Life Span of the
granulators
(YRS)

Details

192

25,655,516.53
7,200.00

1028.64KW

70.87

Ergonomic
- Visual Angle

1.76 Degrees

Return on
Investment Months

6.946037497

C. Evaluate the possible system level design approaches

The proponents considered three alternative designs in this project. Each design presents
a new facility layout and acquisition of machines. In the first design, the proponents reduced the
number of workers and transferred them to other production centers while the second design
retained the existing workers in the production line. The third design is the simplest and is closest
to the existing design. A trade-off matrix is used to measure the importance of the relative
constraints to their function and operation.
The proponents used the Likert scale to indicate importance. The interval distance
between values is implicitly identical with Likert scales. The choice of the number of integers
used is somewhat arbitrary, as is the definition of the scale, e.g., lowest to highest, highest to
lowest. The rating technique allowed the decision makers to place each criterion on a scale by
assigning a number to each criterion (Charles Yoe, Ph.D., 2002). The table below shows the
decision criteria used in this study.
Table C1 Decision Criteria
Constraint

Level of Importance

Design 1

Design 2

Design 3

Economic

3.85

5.00

4.1

Productivity

4.00

3.56

3. 12

Environmental

2.73

2.91

3.00

Sustainability

0. 50

1.06

2.00

Ergonomic

0.44

1.00

0.88

2.504

2.506

2.62

Overall Rank

Reference: Otto, K, N and Antonsson, E.K., (1991). Trade of strategies in engineering

design. Research in Engineering Design, Volume 3, number 2, pages 87-104. Retrieved
fromhttp:www.design.caltech.edu/Research/Publications/90e.pdf on March 11,2013

Criterions Level of Importance

5 Very Important
4 Fairly Important
3 Important
2 Slightly Important
1 Not Important

Economic:
Total Cost (Philippine Peso)
% () =

(, , . ,,.)
, , .

= .

% () =

(,,. ,,.)
, , .

= .

() = 5 ( . ) = 4.2
() = 5( . ) = 4.45
Depreciation Cost
,, = .
,

% () =

,.
, .

% (1) =

= .

( 2) = 5( . ) = 3. 55
( ) = 5( . ) = 3. 70
Economic
Total Capital Cost
Depreciation Cost
Average

Level of
Importance
4

Design 1 Design 2 Design 3

4
4

4
3.70

4.45
3.55

4.2
4

3.85

4.1

Productivity:
% ( )
=

_____________ = 0.22

% ( )


= ____________ = 0.11

() = 4( . ) = 3. 12
() = 4( . ) = 3. 56
Environmental:
% () =
, . , .
____________________________
, .

= 0.09

% () =
, . .
___________________________ = 0.03
, .
() = ( . ) = .
() = ( . ) = .

Sustainability:
% () =

________ = 0.750

% () =
0
________ = 0.469
.
() = 2( 0. ) = 0. 50
() = 2( . ) = 1.06

Ergonomic:
% () =
. .
___________________ = 0.16
.
% () =
. .
___________________ = 0.12
.
() = 1( . ) = 0. 84
() = 1( . ) = 0. 88

D. Recommend a preferred approach/alternative

Among the designs, Design 3 satisfied most of the constraints. Thus, the proponents
conclude that Design 3 is the most favorable design alternative for the company. The
proponents also recommend renovation of the production by considering the ventilation,
lighting system and fire alarm proposed. This is to realign the production layout in accordance
with its local and international standards.
III.

System requirements analysis

A. Translate the need and the chosen design approach to operational requirements
The company is conducting this research in order to fully optimize the operation with regards to
reducing cost. The Design 3 conforms with the requirements which is according to the level of
criteria based on the researchers perception and also base on the companys requirements. If
the design will be able to be implemented, it will give the company:
Productivity
- Output per day
Economic
- Total Capital
- Depreciation Costs
Environmental
- Total Energy Consumption
Sustainability
- Life Span of the granulators (YRS)
Ergonomic
- Visual Angle

192
25,655,516.53
7,200.00
1028.64KW
70.87
1.76 Degrees

Return on Investment - Months

6.946037497
B. Prepare the system maintenance and support concept
When designing a new system, a change is coming to the organization so it is very
important to have consider the factors which the operation. Here are some that the organization
might consider:
1. Reorganizing the affected units of the firm
2. Redesigning the jobs of people who will be affected by the system
3. Enhancing user motivation
4. Conducting user training.
After the system has stabilized and fully functioning, the maintenance support is
important. On the Design 3, it shows there it propose an automated monitoring process and
machines for the operation, so it says there that automation of the process or the design was
conducted. The automation requires a software based approach for it to connect with all the
operations for monitoring.
Systems maintenance - the principal effort in system maintenance is directed at maintaining the
applications software.
1. Perfective maintenance
- enhancing and modifying the system to respond to changing user requirements and
organizational needs, improving system efficiency, and enhancing documentation.
2. Adaptive maintenance
- changing the application to adapt it to a new hardware or software environment.
Adaptive maintenance may involve, for example, moving an application from a mainframe to a
client/server environment, or converting it from a file to a database environment.
3. Corrective maintenance
- correcting an error discovered during operations.
C. Identify the technical performance measures (TPMs)
Constraint

Level of Importance

Design 1

Design 2

Design 3

Economic

3.85

5.00

4.1

Productivity

4.00

3.56

3. 12

Environmental

2.73

2.91

3.00

Sustainability

0. 50

1.06

2.00

Ergonomic

0.44

1.00

0.88

2.504

2.506

2.62

Overall Rank

The researcher uses a level criteria in order to determine which design rally
complies with the companys requirements. By considering economic, productivity,
Environmental, sustainability and ergonomics the researcher had computed for the
affectivity of each design with regards to the level of importance per criterion.

PC-01
INJECTION
MONTHLY TARGET
GOOD OUTPUT

PERFORMANCE
RATING
SCRAP
RATE LIMIT

JANUARY 2014
122,925.40
101,837.28

82.84%
3,223.84

FEBRUARY
2014
123,539.06
118,825.78

96.18%
3,679.58

MARCH 2014
133,853.60
119,497.21

89.27%
3,736.04

APRIL 2014
130,831.84
80,938.27

61.86%
2,503.21

PROCESS REJECT
PERCENTAGE (%)

PERFORMANCE

5,623.99
4.61%

3,826.85
2.78%

5,037.35
3.59%

2,502.20
2.68%

25.55%

96.00%

65.17%

RATING
FACTORY
REJECT
PERCENTAGE (%)

14,564.24
11.94%

14,830.04
10.79%

15,722.57
11.21%

9,834.62
10.54%

PERFORMANCE
RATING
TOTAL
REJECT
PERCENTAGE (%)

-251.77%
20,188.23
16.54%

-203.04%
18,656.89
13.57%

-220.84%
20,759.92
14.80%

-192.88%
12,336.82
13.23%

PERFORMANCE
RATING
MACHINE
SET-UP DOWNTIME
MACHINE
DOWNTIME
TOTAL
DOWNTIME

-426.22%
10,472.00
1,119.50
211.00
1,330.50

-307.04%
11,880.00
615.50
231.50
847.00

-355.67%
12,320.00
1,111.75
385.00
1,496.75

-292.84%
11,000.00
1,691.25
811.50
2,502.75

87.29%

92.87%

87.85%

77.25%

PERFORMANCE
RATING

100.04%

The table shows the performance rating of the PC-1 injection molding. Based on target output,
the scrap rate, rejects, machine utilization and downtime is computed. These will be the guide for the
monthly performance measure.

D. Functional Analysis and Allocation

The Functional Analysis and allocation bridges the gap between the high level set of system
requirements and constraints and the detailed set required to develop or purchase systems and
implement programs.
The project cost
Design 3
Qty
Supplier
2
Kefe
i Corporation
1
Industrial Controls
115.221
Construction
Project Cost
Lost in
Production
* The installation fee is included on the total
price of the product/system
Item
Granulator (Large)
Andon Board System
Constrution/Renevation Cost:

Unit Price
Total Price
Installation Fee
80,000.00
160,000.00
16,000.00
1,000,000.00 1,000,000.00
100,000.00
11,534 1,328,959.01
2,488,959.01
6,358,777.47

The plan below shows the implementation plan of the Design 3: Embedded U-Shape Product
Pick-Up Route for Packing with Andon Board Monitoring System. The duration of the
implementation is 2 days. The first process will be the re-arrangement of Machines by having
the floor renovation and moving the machine at the same time there would be a wall breaking
to creak a bigger path way of entering and exiting for products to the production area.
Wherein the existing office will be renovated and transferred to the new building of the
company. Then there will be an installation of Andon Board System wherein every machines
will have a touch panel connects to the Andon system at the same time the granulators are also
installed after the installation they should calibrate the system if it is working and have the dry
run of the whole system to determine the errors. During the construction of the production
center the company provide a training for the employee in using the new system. In these 2
days of implementing the project there would be a closed production wherein there is no

production of products will be made. Two days duration of the project because the company
is working 24/7 so the renovation should be done in a short time because longer duration
makes the revenue smaller.
The implementation plan is as follows for re-arrangement of Machine:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Floor Renovation
Moving of Machines
Wall Breaking
Renovation/Transferring of the office to the new building
Renovation for Big Entrance
Installation of Andon Board System
Installation of Touch Panels per machine
Installation of Andon Board
Calibration of the system
Dry-Run of the System
Installation of the Granulators (2)
Installation/Checking of the Granulators