CHAPTER I

1.1 INTRODUCTION
The company of Emerson Network Power, Cavite, is a division of
Emerson Electric Company, a global technology company that specializes
primarily to engage in the manufacture of electronic power conversion
products. Also in the development and manufacture of power backup
systems, power supplies, embedded computing solutions, precision cooling,
racks/enclosures, infrastructure management, and connectivity technologies
for original equipment manufacturers, and telecommunications service
providers.
The company is composed of different production area consisting of a
number of production lines, which produces specific electronic products in
each line. From that, the company allowed us to conduct our study at the
ASP Production specifically at LPQ Line in which there is an application of
Motion & Time Study (MTS), which really suited for the objective of our study.
During our line tour at LPQ Line, we observed each process conducting
a Motion & Time Study to gathered data for us to see where the bottleneck
occurred. From that we found out that the consumed time at ICT Station
exceeded the design cycle time that is why among all operations it is the
main source of bottleneck causing production delay.
Similar organizations will benefit from the study, serving as a reference
for future use.

1.2 COMPANY PROFILE:

Company Name/Address:

Astec Power Philippines, Inc.

Main Ave. Corner Rd. J,
Cavite Economic Zone,
Rosario, Cavite, Philippines

Company Telephone/Fax Nos.:

+63 046 971 2000 /

1

+63 046 971 2113

Company E-mail Address:

www.emerson.com

Company Plant Address:

Astec Power Philippines, Inc.

Main Ave. Corner Rd. J,
Cavite Economic Zone,
Rosario, Cavite, Philippines

Company Plant Tele/Fax No.:

+63 046 971 2000 /

+63 046 971 2113

Company Contact Person/s:

Ryan Urbanozo

Position:

Training Manager

Nature of Business:

Manufacturer, processor, exporter of ACDC power supplies, chargers and power

accessories

LIST PRODUCTS
-

AC-DC Power Supplies

DIN rail power Supplies
External Power Adapters
Power Factor Correction Modules
Modular Power Supplies
Chargers
Rack-Mounting Bulk Power Units
2

1.3 BACKGROUND OF THE STUDY

LCM-600 is an advanced type of circuit board that Emerson Network
Power recently developed. Based on the data gathered, the bottleneck of the
production line process is in the ICT Station. The target output is 9,408
pieces but the produced output was only 9,024 which is 95.92% of the 100%
productivity (based on the October 2013 to January 2014 data).

1.4 STATEMENT OF THE PROBLEM

Emerson Network Power is experiencing 4.08% opportunity loss in the
ICT Station producing LCM-600 circuit boards from the month of October
2013 to January 2014 amounting to 1,071,360 pesos.

1.5 OBJECTIVE OF THE STUDY

GENERAL OBJECTIVE
The general objective of this study is to provide information
relevant to the possible solutions on minimizing the problem of
opportunity loss in the production line of the company.
3

SPECIFIC OBJECTIVE
o To improve existing process of the production line
o To reduce idle time of the operators waiting due to the delay of
the production
o To achieve the highest possible productivity of LCM-600

1.6 SIGNIFICANCE OF THE STUDY

The assessment project was developed for further analyzation of the
sought problem and it will provide benefits to the following:
1. Company
This study can help the company to realize the problems that acquire
additional cost in the production and to come out with a solution to the said
problem.
2. Employee of the Company
This study could motivate and challenge the employees to find ways
that will surely help the production in achieving the highest productivity.
3. Customer of Company

This study will make them be more cognizant and aware of how the
company produced their products.
4. Future Researchers
This study can serve as a reference guide to the future researchers to
improve their related research allowing them to have further ideas for the
development of their studies.
5. Researcher
Researchers may find the findings useful by providing some insights
and information on how they come up with the study.

1.7 SCOPE AND LIMITATIONS

The study was conducted to determine the factors affecting for not
meeting the target output of the production and the study will focus on the
production line of Emerson Network Power particularly in the ICT Station
producing LCM-600 from the month of October 2013 to January 2014 to
develop and improve the existing process. The study is limited to

1.8 METHODOLOGY USED FOR THE STUDY

5

Interview
The researchers conducted an interview to the staff, team leaders,
supervisors and manager of the company in order to gather enough
information and to be familiar on the processes involve in the production
line. Engineering Department explained the flow of operations and guided
the researchers in their line tour describing each processes the product
undergoes.

Observation
The proponent involved himself to permit the researchers to wander
inside the manufacturing location and allow them to examine the operations.
Observation to the operation provides the researcher further understanding
to the whole process and every detail and skills needed for the production.

Research and Data gathering

The data is gathered with the help of Operations Manager. He permits
the researchers to make a company visit to see the input and output records
and gives some information of the coming and goings of the production
department. The Financing Manager also provided some data to the
researchers. With the following data collected the researchers were able to
formulate solutions to the problem of the production.
6

1.9 DEFINITION OF TERMS

CT - Cycle time is the total time from the beginning to the end of process
DT - downtime time when you are not working or busy, time during which a
computer or machine is not working.
Kanban sign - The term kanban refers to a visual replenishment signal such
as a card or an empty bin for an item
OSA - operational sequence analysis, is a predetermined motion time system
that is used primarily in industrial settings to set the standard time
OT - overtime is the amount of time someone works beyond normal working
hours.
QA - Quality assurance (QA) is a way of preventing mistakes or defects in
manufactured products and avoiding problems when delivering services to
customers.
Quota - a specific amount or number that is expected to be achieved

CHAPTER II
REVIEW OF RELATED LITERATURE
A printed circuit board, or PCB, is a self-contained module of
interconnected electronic components found in devices ranging from
common beepers, or

pagers,

and

radios

to

sophisticated

radar

and

computer systems. The circuits are formed by a thin layer of conducting

material deposited, or "printed," on the surface of an insulating board known
as the substrate. Individual electronic components are placed on the surface
of the substrate and soldered to the interconnecting circuits. Contact fingers
along one or more edges of the substrate act as connectors to other PCBs or
to external electrical devices such as on-off switches. A printed circuit board
may have circuits that perform a single function, such as a signal amplifier,
or multiple functions.
There are three major types of printed circuit board construction:
single-sided, double-sided, and multi-layered. Single-sided boards have the
components on one side of the substrate. When the number of components
becomes too much for a single-sided board, a double-sided board may be
used. Electrical connections between the circuits on each side are made by
drilling holes through the substrate in appropriate locations and plating the
inside of the holes with a conducting material. The third type, a multi-layered
board, has a substrate made up of layers of printed circuits separated by
layers of insulation. The components on the surface connect through plated
8

holes drilled down to the appropriate circuit layer. This greatly simplifies the
circuit pattern.
Components on a printed circuit board are electrically connected to the
circuits by two different methods: the older "through hole technology" and
the newer "surface mount technology." With through hole technology, each
component has thin wires, or leads, which are pushed through small holes in
the substrate and soldered to connection pads in the circuits on the opposite
side. Gravity and friction between the leads and the sides of the holes keeps
the components in place until they are soldered. With surface mount
technology, stubby J-shaped or L-shaped legs on each component contact
the printed circuits directly. A solder paste consisting of glue, flux, and solder
are applied at the point of contact to hold the components in place until the
solder is melted, or "reflowed," in an oven to make the final connection.
Although surface mount technology requires greater care in the placement of
the components, it eliminates the time-consuming drilling process and the
space-consuming connection pads inherent with through hole technology.
Both technologies are used today.
Two other types of circuit assemblies are related to the printed circuit
board. An integrated

circuit, sometimes called an IC or microchip,

performs similar functions to a printed circuit board except the IC contains

many more circuits and components that are electrochemically "grown" in
place on the surface of a very small chip of silicon. A hybrid circuit, as the
name implies, looks like a printed circuit board, but contains some
components that are grown onto the surface of the substrate rather than
being placed on the surface and soldered.
History
9

Printed circuit boards evolved from electrical connection systems that

were developed in the 1850s. Metal strips or rods were originally used to
connect large electric components mounted on wooden bases. In time the
metal strips were replaced by wires connected to screw terminals, and
wooden bases were replaced by metal chassis. But smaller and more
compact designs were needed due to the increased operating needs of the
products that used circuit boards. In 1925, Charles Ducas of the United
States submitted a patent application for a method of creating an electrical
path directly on an insulated surface by printing through a stencil with
electrically conductive inks. This method gave birth to the name "printed
wiring" or "printed circuit."
In the 1943, Paul Eisler of the United Kingdom patented a method of etching
the conductive pattern, or circuits, on a layer of copper foil bonded to a
glass-reinforced, non-conductive base. Widespread use of Eisler's technique
did not come until the 1950s when the transistor was introduced for
commercial use. Up to that point, the size of vacuum tubes and other
components were so large that the traditional mounting and wiring methods
were all that was needed. With the advent of transistors, however, the
components became very small, and manufacturers turned to printed circuit
boards to reduce the overall size of the electronic package.
Through hole technology and its use in multi-layer PCBs was patented
by the U.S. firm Hazeltyne in 1961. The resulting increase in component
density and closely spaced electrical paths started a new era in PCB design.
Integrated circuit chips were introduced in the 1970s, and these components
were

quickly

incorporated

into

printed

circuit

board

design

and

manufacturing techniques.

10

Design
There is no such thing as a standard printed circuit board. Each board
has a unique function for a particular product and must be designed to
perform that function in the space allotted. Board designers use computeraided design systems with special software to layout the circuit pattern on
the board. The spaces between electrical conducting paths are often 0.04
inches (1.0 mm) or smaller. The location of the holes for component leads or
contact points are also laid out, and this information is translated into
instructions for a computer numerical controlled drilling machine or for the
automatic solder paster used in the manufacturing process.
Once the circuit pattern is laid out, a negative image, or mask, is printed out
at exact size on a clear plastic sheet. With a negative image, the areas that
are not part of the circuit pattern are shown in black and the circuit pattern is
shown as clear.
Raw Materials
The substrate most commonly used in printed circuit boards is a glass
fiber reinforced (fiberglass) epoxy resin with a copper foil bonded on to one
or both sides. PCBs made from paper reinforced phenolic resin with a bonded
copper foil are less expensive and are often used in household electrical
devices.
The printed circuits are made of copper, which is either plated or etched
away on the surface of the substrate to leave the pattern desired. (See
"additive" and "subtractive" processes described in step 3 under The
Manufacturing Process). The copper circuits are coated with a layer of tin-

11

lead to prevent oxidation. Contact fingers are plated with tin-lead, then
nickel, and finally gold for excellent conductivity.
Purchased components include resistors, capacitors, transistors, diodes,
integrated circuit chips, and others.

The

Manufacturing

Process
Printed circuit board processing and assembly are done in an
extremely clean environment where the air and components can be kept free
of contamination. Most electronic manufacturers have their own proprietary
processes, but the following steps might typically be used to make a twosided printed circuit board.

Woven glass fiber is unwound from a roll and fed through a process
station

12

Figure 2a Making the substrate shows an enlarged section of a

PCB.
where it is impregnated with epoxy resin either by dipping or spraying.
The impregnated glass fiber then passes through rollers which roll the
material to the desired thick-ness for the finished substrate and also
remove any excess resin.

The substrate material passes through an oven where it is semicured.

After the oven, the material is cut into large panels.

The panels are stacked in layers, alternating with layers of adhesivebacked copper foil. The stacks are placed in a press where they are
13

subjected to temperatures of about 340F (170C) and pressures of

1500 psi for an hour or more. This fully cures the resin and tightly
bonds the copper foil to the surface of the substrate material.
Drilling and plating the holes

Several panels of substrate, each large enough to make several

printed circuit boards, are stacked on top of each other and pinned
together to keep them from moving. The stacked panels are placed in
a CNC machine, and the holes are drilled according to the pattern
determined when the boards were laid out. The holes are deburred to
remove any excess material clinging to the edges of the holes.

The inside surfaces of the holes designed to provide a conductive

circuit from one side of the board to the other are plated with copper.
Non-conducting holes are plugged to keep them from being plated

14

Figure 2b Drilling and plating the holes shows the drilling and
plating the holes after the individual boards are cut from the larger
panel.
Creating the printed circuit pattern on the substrate
The printed circuit pattern may be created by an "additive" process or a
"subtractive" process. In the additive process, copper is plated, or added,
onto the surface of the substrate in the desired pattern, leaving the rest of
the surface unplated. In the subtractive process, the entire surface of the
substrate is first plated, and then the areas that are not part of the desired
pattern are etched away, or subtracted. We shall describe the additive
process.

The foil surface of the substrate is degreased. The panels pass through
a vacuum chamber where a layer of positive photoresist material is
15

pressed firmly onto the entire surface of the foil. A positive photoresist
material is a polymer that has the property of becoming more soluble
when exposed to ultraviolet light. The vacuum ensures that no air
bubbles are trapped between the foil and the photoresist. The printed
circuit pattern mask is laid on top of the photoresist and the panels are
exposed to an intense ultraviolet light. Because the mask is clear in the
areas of the printed circuit pattern, the photoresist in those areas is
irradiated and becomes very soluble.

The mask is removed, and the surface of the panels is sprayed with an
alkaline developer that dissolves the irradiated photoresist in the areas
of the printed circuit pattern, leaving the copper foil exposed on the
surface of the substrate.

The panels are then electroplated with copper. The foil on the surface
of the substrate acts as the cathode in this process, and the copper is
plated in the exposed foil areas to a thickness of about 0.001-0.002
inches (0.025-0.050 mm). The areas still covered with photoresist
cannot act as a cathode and are not plated. Tin-lead or another
protective coating is plated on top of the copper plating to prevent the
copper from oxidizing and as a resist for the next manufacturing step.

The photoresist is stripped from the boards with a solvent to expose

the substrate's copper foil between the plated printed circuit pattern.
The boards are sprayed with an acid solution which eats away the
copper foil. The copper plating on the printed circuit pattern is
protected by the tin-lead coating and is unaffected by the acid.

16

Attaching the contact fingers

The contact fingers are attached to the edge of the substrate to

connect with the printed circuit. The contact fingers are masked off
from the rest of the board and then plated. Plating is done with three
metals: first tin-lead, next nickel, then gold.

Fusing the tin-lead coating

The tin-lead coating on the surface of the copper printed circuit pattern
is very porous and is easily oxidized. To protect it, the panels are
passed through a "reflow" oven or hot oil bath which causes the tinlead to melt, or reflow, into a shiny surface.

Sealing, stenciling, and cutting the panels

Each panel is sealed with epoxy to protect the circuits from being
damaged while components are being attached. Instructions and other
markings are stenciled onto the boards.

The panels are then cut into individual boards and the edges are
smoothed.

Mounting the components

Individual boards pass through several machines which place the

electronic components in their proper location in the circuit. If surface
mount technology is going to be used to mount the components, the
boards first pass through an automatic solder paster, which places a
dab of solder paste at each component contact point. Very small
components may be placed by a "chip shooter" which rapidly places, or
17

shoots, the components onto the board. Larger components may be

robotically placed. Some components may be too large or odd-sized for
robotic placement and must be manually placed and soldered later.

The components are then soldered to the circuits. With surface mount
technology, the soldering is done by passing the boards through
another reflow process, which causes the solder paste to melt and
make the connection.

The flux residue from the solder is cleaned with water or solvents
depending on the type of solder used.

Packaging

Unless the printed circuit boards are going to be used immediately,

they are individually packaged in protective plastic bags for storage or
shipping.

Quality Control
Visual and electrical inspections are made throughout the manufacturing
process to detect flaws. Some of these flaws are generated by the
automated machines. For example, components are sometimes misplaced on
the board or shifted before final soldering. Other flaws are caused by the
application of too much solder paste, which can cause excess solder to flow,
or bridge, across two adjacent printed circuit paths. Heating the solder too
quickly in the final reflow process can cause a "tombstone" effect where one
end of a component lifts up off the board and doesn't make contact.
Completed boards are also tested for functional performance to ensure their
output is within the desired limits. Some boards are subjected to
18

environmental tests to determine their performance under extremes of heat,

humidity, vibration, and impact.
Toxic

Materials

and

Safety Considerations
The

solder

used

to

make

electrical

connections

on

PCB

contains lead, which is considered a toxic material. The fumes from the
solder are considered a health hazard, and the soldering operations must be
carried out in a closed environment. The fumes must be given appropriate
extraction and cleaning before being discharged to the atmosphere.
Many electronic products containing PCBs are becoming obsolete
within 12-18 months. The potential for these obsolete products entering the
wastestream and ending up in landfills has many environmentalists
concerned. Recycling efforts for electronic products include refurbishing older
products and reselling them to customers that don't need, or have access to,
newer, state-of-the-art electronics. Other electronics are disassembled and
the computer parts are salvaged for resale and reuse in other products.
In many countries in Europe, legislation requires manufacturers to buy
back their used products and render them safe for the environment before
disposal. For manufacturers of electronics, this means they must remove and
reclaim the toxic solder from their PCBs. This is an expensive process and
has spurred research into the development of non-toxic means of making
electrical connections. One promising approach involves the use of watersoluble, electrically conductive molded plastics to replace the wires and
solder.
The Future
19

The miniaturization of electronic products continues to drive printed

circuit board manufacturing towards smaller and more densely packed
boards with increased electronic capabilities. Advancements beyond the
boards described here include three-dimensional molded plastic boards and
the increased use of integrated circuit chips. These and other advancements
will keep the manufacture of printed circuit boards a dynamic field for many
years.

CHAPTER III
PRESENTATION OF GATHERED DATA
3.1 Motion &Time Study Form

20

Figure 3.1a Motion & Time Study Form shows our gathered data from 3cycle time for each process. With this, we were able to detect the process

consuming much time, highlighted with red marks.

Figure 3.1b Graphical Analysis shows the graph, which revealed the
source of bottleneck in the operation. As presented, T1 and T4 exceeded the
design cycle time.

21

3.2 Monthly Output Tables

Table 3.2a Shows the breakdown of the weekly output data produced by the
company for the month of October 2013 comprising the percentage loss
incurred by the company with corresponding cost computations.
OCTOBER 2013
TARGET
OUTPUT
(units/we
ek)

ACTUAL
OUTPUT

% LOSS

(per unit)

TARGET
OUTPUT
( units/da
y)

COST
COMPUTATION
S(Php)

WEEK 40

98

588

564

4.08

66,960

WEEK 41

98

588

566

3.74

61,380

WEEK 42

98

588

562

4.42

72,540

WEEK 43

98

588

564

4.08

66,960

2352

2256

16.32

267,840

588

569

4.08

TOTAL
AVERAGE

98

Table 3.2b Shows the breakdown of the weekly output data produced by the
company for the month of November 2013 comprising the percentage loss
incurred by the company with corresponding cost computations.
NOVEMBER 2013
22

TARGET
OUTPUT
(units/we
ek)

ACTUAL
OUTPUT

% LOSS

(per unit)

TARGET
OUTPUT
( units/da
y)

COST
COMPUTATIO
NS(Php)

WEEK 44

98

588

566

3.74

61,380

WEEK 45

98

588

564

4.08

66,960

WEEK 46

98

588

564

4.08

66,960

WEEK 47

98

588

566

3.74

61,380

WEEK 47

98

588

564

4.08

66,960

2940

2824

19.72

323,640

588

568

3.94

TOTAL
AVERAGE

98

Table 3.2c Shows the breakdown of the weekly output data produced by the
company for the month of December 2013 comprising the percentage loss
incurred by the company with corresponding cost computations.
DECEMBER 2013
TARGET
OUTPUT
(units/we
ek)

ACTUAL
OUTPUT

% LOSS

(per unit)

TARGET
OUTPUT
( units/da
y)

COST
COMPUTATIO
NS(Php)

WEEK 49

98

588

574

2.38

39,060
23

WEEK 50

98

588

570

3.06

WEEK 51

98

588

566

WEEK 52

98

588

548

6.80

111,600

TOTAL

392

2352

2258

15.98

262,260

AVERAGE

98

588

580

3.99

3.74

50220
61,380

Table 3.2d Shows the breakdown of the weekly output data produced by the
company for the month of January 2014 comprising the percentage loss
incurred by the company with corresponding cost computations.
JANUARY 2014
TARGET
OUTPUT
(units/we
ek)

ACTUAL
OUTPUT

% DIFF

(per unit)

TARGET
OUTPUT
( units/da
y)

COST
COMPUTATION
S(Php)

WEEK 01

98

588

546

7.14

117,180

WEEK 02

98

588

578

1.70

27,900

WEEK 03

98

588

562

4.42

72,540

1764

1686

13.26

217,620

TOTAL

24

AVERAGE

98

588

585

4.42

3.3 Summary of Monthly Output Data

Table 3.3a Shows the overall detailed breakdown of summary of the
monthly output data produced by the company for the month of October
2013 to January 2014 together with the supporting computations under it.
TARGET
OUTPUT
(units/we
ek)

ACTUAL
OUTPUT

% LOSS

(per unit)

TARGET
OUTPUT
( units/da
y)

COST
COMPUTATION
S(Php)

OCT. 2013

98

2352

2256

4.08

267,840

NOV. 2013

98

2940

2824

3.94

323,640

DEC. 2013

98

2352

2258

3.99

262,260

JAN. 2014

98

1764

1686

4.42

217,620

9408

9024

TOTAL
AVERAGE

1,071,360.00
4.08

25

SUPPORTING COMPUTATIONS
TARGET OUTPUT = TARGET OUTPUT/day*96 WORKING DAYS
98*96 = 9408 units
ACTUAL OUTPUT = ACTUAL OUTPUT/month
2256+2824+2258+1686 = 9024units
DIFFERENCE = TARGET OUTPUT - ACTUAL OUTPUT
9408 - 9024 = 384 units
% LOSS = (TARGET OUTPUT - ACTUAL OUTPUT)/ TARGET OUTPUT*100%
(9408 units - 9024units )/ 9408 units*100 = 4.08%
COST COMPUTATIONS = DIFFERENCE*FACTORY PRICE/unit
= 384 units*62$/unit (45pesos) = 1,071,360Php

CHAPTER IV
ANALYSIS OF DATA
4.1 Problem Tree

Poor
Production
Layout

Manpower
Deficiency

Outdated
Parts
26
Accessories
for

Causes

Core

Emerson Network Power is experiencing 4.08% opportunity loss in ICT Station

producing LCM-600 circuit boards from the month of October 2013 to January
Problem
2014 amounting to 1,071,360 pesos.

Effects

Slow
Production

Low
Productivity

Opportunity
Loss

Figure 4.1a Problem Tree Structure shows the reasons that caused why
existing core problem occurred and the effects it contributed to the whole
production line.

4.2 Problem Tree Analysis

CAUSES
Poor Layout
Layout of the company is very essential, with the set up of the
machines and the path needed in the transportation, and it can determine
the optimal productivity of a certain process. From the current layout, its
hard for the operator of the ICT Station to get the circuit boards because
there is no conveyor belt on that production line to support the transferring
of the units on that station that is why he needs to travel quite a distance
27

about 30-40 seconds just to reach the units and go back again to the station.
On the other hand, the arrangement of the testing machines is not in line
with each other so it takes time and too much motion for the operator to
handle the machines. These causes traffic and congestion to the production
line.

Manpower Deficiency
In production process, manpower is of very important because they are
the one in charge for operating the machines and keeping the production
process ongoing. With our gathered data, there is a target output of 9,408
pieces of circuit boards but the produced output was only 9024 pieces. This
is 4.08% opportunity loss experienced by the company due particularly in
the ICT Station which composed of T1 and T4, each of which consists of 3
machines. With regards to the distribution of load, there is 1 staff who
operates in the ICT Station and 1 staff only who operates to both T1 and T4.
If there will be an additional manpower that would operate T1 and T4
separately, we can minimize the time it consumes thus, opportunity loss will
be minimize.
Out-dated Parts Accessories for Production
The companys parts accessories though can be considered as enough
in number but still it cant fully support the production line due to its
functionality problem which unexpectedly takes place during the production
process causing delays on the production line resulting for its functional
ability to be not that consistent and accurate.
28

EFFECTS
Slow Production
Problems in parts accessories can result to the speed loss causing
delays of transferring the items from one operation to another process. The
production will become ineffective and will come up for not meeting their
quota which may lead to opportunity loss.

Low Productivity
In the production process system of the company, distance travel done
by the operator is one of the major impacts why delay on the production line
occurs. The transportation of the items consumes time leading to bottle neck
instances which in turn causes idle time for the next operation. In the case of
the ICT station, low productivity happens because of unnecessary motions,
manpower deficiency due as well to the outdated parts accessories.

Opportunity Loss
The company is facing a profit loss for not meeting the target output of
the production. They must be able to finish the required number of circuit
boards because their major products rely on such components, so for them
to sustain the needs of such products they should meet the quota and once
the quota is not met, the company will have to extend the working hours
producing additional expenses to the manpower, machines and other
operational expenses.
29

4.3 Objective Tree

MEANS

Arrange
Layout
Effectively &
Efficiently

Install Belt
Conveyor

To minimize 4.08% opportunity loss in the ICT station of the

OBJECTIVE

ENDS

Sustain
Enough
Manpower

production process.

Fast
Production

High
Productivity

Profit
Opportunity

Figure 4.3a shows the means to accomplish the objective and the end of
each mean.
4.4 Objective Tree Analysis
MEANS
Arrange Layout Effectively and Efficiently
Arranging the production layout and the facilities design, placing them
on proper location, the production line will flow effectively and efficiently. It
will benefit and provide adequate system that will allow more effective and
efficient workers. The machines should be in line next to each other and near
to the next process of operation to minimize the travel time it takes.

30

Sustain Enough Manpower

Manpower is a key essential part of the manufacturing process. They
are the one who make the objective of the company to met. Manpower
should be sustained enough and directly distributed as well as equally
balanced to the need of the production. Since there is a bottleneck that is
experiencing in the ICT Station, the researcher is looking forward to the
development of the distribution of manpower the process is needed.
.
Install Conveyor Belt
Installing conveyor belt in the ICT Station will result to smooth flow of
operation which may take place. It will also lessen the handling of the items
which are unnecessary and will minimize the causes of opportunity loss. Also
the conveyor belt is the cheapest and more productive type of conveyor that
is appropriate in the production environment. With the use of conveyor belt,
the items will smoothly run throughout the whole production phase
especially in the ICT Station where the items are sought to be in critical
receiving of items.

ENDS
Additional Profit Opportunity
When the improvement done in the ICT Station of the company, the
operators can now maximize their job and save time and energy that can do
their job more effectively. It will eliminate delay which can be happened to
31

the production line of the company. With this improvement, it will increase
their productivity that can now meet the quota.

High Productivity
As the improvement of the flow pattern is being implemented, the
production will become effective and productive to the extent that the flow of
the production is expected to be smooth flowing. The operators can
maximize their time, and energy effectively. There is no reason for delays,
and traffic jams. The process will flow effective and furthermore the
production will meet its quota. The machine will run only when needed and
the whole production will move effectively.

Gain Profit
Achieving these goals and objectives, the company can reduce the
opportunity loss and in return, the profit will equalize with the production
output of the company thus, it is gaining.

CHAPTER V
ALTERNATIVE COURSES OF ACTION
32

5.1 ACA#1 ARRANGE LAYOUT

The proposed layout of the researchers is to arrange the production
line into single flow formation. The machines for the station of ICT Station T1 and T4 are aligned in single row for better access of the operators. The
Sony Bond and Coating stations are combined into one line as well as the
FVI, FCC, QA, Labelling and Packing. With this arrangement the flow of
production will be smooth and fast.

Table 5.1a shows the advantages and disadvantages of rearranging

the layout
Advantages
Smooth flow of production

Disadvantages
Additional cost

Eliminate traffic
Eliminate unfinished works
Fast and effective
production

COST COMPUTATION OF:

Installation of Ventilation Tube Fan

COST = manpower(labor/hour) * Rate/Hour *No of workers
COST = 300 * 8 * 4
COST = 9,600.00 Php
33

Price Based on Payroll Office and HRD office

Ventilation Tube Fan

COST = Unit Price * Piece
COST= $50*45*2
COST = 4,500.00Php
Price Based on http://www.alibaba.com/product-gs/1616998138/ventilation_tube_fan.html?
s=p

Total Cost of ACA#1

TOTAL = Installation fee + Ventilation tube fan
TOTAL = 9,600.00 + 4,500.00
TOTAL = 14,100.00Php

5. 2 ACA#2 EFFECTIVE DISTRIBUTION OF MANPOWER

Placing an additional operator at ICT Station of both T1 and T4 line
shall eliminate traffic on the production flow since one operator cannot
handle three machines at the same time. This is more preferable than to
implement Overtime because the cost is lesser. The Management have to
include all the operators in the production line on OT because each process
cannot run without the each other.

34

Table 5.2a shows the advantages and disadvantages of adding man power
to the production line
Advantages
Smooth flow of production

Disadvantages
Additional cost

Eliminate traffic
Eliminate unfinished works
Fast and effective production
Equal distribution of
manpower

COST COMPUTATION
Wage Computation
COST = No. manpower * Rate * Days
COST = (1*350)*6
COST = 2,100 Php / Salary per week
Price Based on HRD office

Training Cost
COST = (Training Materials + Food for trainer) *No. of Days
COST = (35 + 45) * 3
COST = 240.00Php
Price Based on HRD office

Total Cost
TOTAL = Wage + Training Cost
TOTAL = 2,100.00 + 240.00

35

TOTAL = 2,340.00Php

While in Overtime:
COST = OT Rate per Hour * basic salary rate * no. of man power
COST = 57 * 350 * 21
COST = 418,950.00Php per hour
Price Based on HRD office

5. 3 ACA#3 REPLACING OF PARTS ACCESSORIES FOR PRODUCTION

The researchers proposed replacement for the WIS (Work Instruction
Sheet), Bar Code Scanner and Conveyor Belt for automated ones. The
operators are having a hard time to use the old scanner because it
sometimes cannot read the bar code sign immediately. The buttons are stiff
and hard to press. The Automated WIS will help the operators to see and
understand the instruction easily and clearly. With the automated conveyor
belt the transportation of product will be faster and it saves time and energy
for the operators.
Automated WIS

LCD Monitor

36

Dimension
15.6 Width
Price: 7,500 Php
COST= Price * Piece
COST= 7,500 * 4
TOTAL: 30,000.00Php
Price Based on http://www.rackmountmart.com/rmLCD/ID-17A.htm

Bar Code Scanner

Price: 2,500.00Php
COST= Price * Piece
COST= 2,500 * 3
TOTAL: 7,500.00Php
Price Based on http://www.barcodesinc.com/cats/barcode-scanners/2d.htm

Automated Conveyor Belt

Belt Width:
16
Conveyor Length: 10'
Price:
$1720 w/o side Rails
TOTAL:
77,400.00Php
Price Based on http://www.a-lined.com/products/belt-incline-conveyors.php

Table 5.3a shows the advantages and disadvantages of replacing parts

accessories for production
ADVANTAGE

Fast and Smooth Flow of Process

Small or delicate part handling

Saves time

Less error

DISADVANTAGE
Additional Cost

37

Thorough inspection of products

Total Cost of ACA#3

Total= LCD monitors + conveyor belt + Barcode scanner
Total= 30,000 + 77,400 + 7,500
Total= 114,900.00Php

COST BENEFIT ANALYSIS

Table 5.4a shows the cost benefit analysis for the alternative courses of action
Alternative Courses
of Action
ACA#1:
Arrange Layout

Cost
TOTAL = Installation fee
+ Ventilation tube fan
TOTAL = 9,600.00 +
4,500.00
TOTAL = 14,100.00Php

ACA#2:
Effective Distribution
of Man Power

Benefits
Tangible
Intangible
ROI = 384 * $62 * 45 Eliminate Traffic
= 1,071,360.00Php
Eliminate
(Based on Factory
Unprocessed items
Pricelist)
Fast flow of
(Return in Less than a production
Month)

TOTAL = 2,100.00 +
240.00

ROI = 384 * $62 * 45

= 1,071,360.00Php
(Based on Factory
Pricelist)
(Return in Less than a

TOTAL= 2,340.00Php

Month)

TOTAL = Wage +
Training Cost

Eliminate traffic
Eliminate
unprocessed items
Fast and effective
production

38

ACA#3:
Install Conveyor Belt,
Automated WIS,
Automated Bar Code
Scanner

Total Cost
Total= LCD panels +
conveyor belt +
Barcode scanner
Total= 30,000 + 77,400
+ 7,500

ROI = 384 * $62 * 45

= 1,071,360.00Php
(Based on Factory
Pricelist)
(Return in Less than a
Month)

Smooth flow of the

production.
Small or delicate part
handling
Saves time
Less error

Total= 114,900.00Php

Thorough inspection
of products
TOTAL

131,340.00Php

1,071,360.00Php

CHAPTER VI
CONCLUSION AND RECOMMENDATION
CONCLUSION
Emerson Network Power is experiencing 4.08% opportunity loss in one
of their production line particularly in the ICT station where the bottle neck
has been detected producing LCM-600 circuit boards from the month of
October 2013 to January 2014. Opportunity Loss is due to the production
line's Poor Production Layout, Inefficient Distribution of Manpower, and
Outdated Parts Accessories for Production as sought by the researchers.
Those findings are based on the current set up of the production line and in
the four months of gathered data. That particular line of production is not
meeting the target output which leads to the opportunity loss of the
company and must be resolve as soon as possible.
RECOMMENDATION
The researchers would like to recommend the use of Alternative
Courses of Action (ACA). First and foremost is ACA#1, which is to Arrange
Layout. Arranging the Layout of the production will make the line run
smoothly and fast. Right after this is ACA#2, which is Effective Distribution of
Manpower. This must put into consideration to maximize their efficiency and
to control their actions to meet the output of the production. And last is
ACA#3 which is Replacing of Parts Accessories for Production. With this,
39

delays caused by the malfunction of those parts can be eliminated by

replacing them with new ones. Though it involves money matters but still, in
return of their investments, it will greatly benefit the company. From these
three alternative courses of action, it can help to resolve the problem of
opportunity loss.
REFERENCES
Braithwaite,

Nicholas

and

Graham

Weaver,

eds. Electronic

Materials. Butterworths, 1990.

Koshel, Dal., ed. Manufacturing Engineer's Reference Book. ButterworthHeinemann, 1993.
Lotter, Bruno. Manufacturing Assembly Handbook. Butterworths, 1986.
Periodicals
Alford, William. "Screen Printing PC Boards." Electronics Now, September
1993, pp. 38-41.
Fernando, James R. "Successful Implementation of a CIM Strategy for a PCB
Manufacturing Facility." Electronic Manufacturing, March 1990.
Kirkland, Carl. "What Ever Happened to Molded 3D Circuit Boards?" Plastics
World, February 1993, pp. 32-36.
Nishioka, Alan. "Iron-On PC Board Patterns." Electronics Now, September
1993, pp. 42-45.
Yam, Philip. "Plastics Get Wired." Scientific American, July 1995, pp. 82-87.
David N. Ford
40

Chris Cavette

41