1

2
3
Table of Contents
Chapter 1 - Introduction .................................................................................................................. 7

1.1- Company history .................................................................................................................. 7

1.2- Mission Statement ............................................................................................................... 7

1.3- Top Pack Objectives ............................................................................................................ 7

1.4 Top Pack Products ............................................................................................................. 8

1.5 Top Pack different departments ......................................................................................... 8

1.6 - Company Assessing ............................................................................................................ 9

1.7 Problem Discussion ........................................................................................................... 9

Chapter 2 ....................................................................................................................................... 11

2.1- Identification of the Project and Motivation: .................................................................... 11

2.2- Requirement and specification: ......................................................................................... 11

2.3- Deliverables: ...................................................................................................................... 12

2.4- Technical and non-technical constraints: .......................................................................... 12

2.5- Incorporation of constraints: .............................................................................................. 12

Chapter 3- Literature review ......................................................................................................... 13

3.1- Organizational Structure .................................................................................................... 13

3.2- Maintenance: ..................................................................................................................... 18

3.3- Facility plan and design: .................................................................................................... 21

3.4- Safety Plan ......................................................................................................................... 23

Chapter 4 - Standards Apply ......................................................................................................... 32

Chapter 5 -Methodology ............................................................................................................... 33

Chapter 6- Contribution ................................................................................................................ 35

6.1-Facility Plan and Design ..................................................................................................... 35

6.1.1- Purpose ....................................................................................................................... 35

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 6.1.2 Problem Discussion: .................................................................................................... 37

6.1.3Given Data from the manager of the company ............................................................. 40

6.1.4Different Alternatives ................................................................................................... 42

6.1.5- Feasibility Study ......................................................................................................... 51

6.1.6- Conclusion .................................................................................................................. 51

6.2- Maintenance....................................................................................................................... 52

6.2.1- Reliability-centered Maintenance: .............................................................................. 52

6.2.2- The Company status: .................................................................................................. 53

6.2.3- The objective: ............................................................................................................. 54

6.2.4- Creating a preventive maintenance schedule: ............................................................ 56

6.2.5- Feasibility study.......................................................................................................... 56

6.3- Safety plan ......................................................................................................................... 60

6.3.1- Incidents cost in the factory: ....................................................................................... 60

6.3.2- Measures taken ........................................................................................................... 64

6.3.3- Return of investment in safety .................................................................................... 75

6.4- Organizational design ........................................................................................................ 76

6.4.1- Purpose ....................................................................................................................... 76

6.4.2- Significance ................................................................................................................ 76

6.4.3- Organizational Structure ............................................................................................. 78

6.4.4- Job description: ........................................................................................................... 79

Chapter 7-...................................................................................................................................... 84

7.1- List of Resources ............................................................................................................... 84

7.2- Time planning and schedule .............................................................................................. 84

Chapter 8 - Conclusion: ................................................................................................................ 85

Chapter 9 - References: ................................................................................................................. 86

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 Organizational Structure ........................................................................................................... 86

Maintenance .............................................................................................................................. 87

Facility plan and design: ........................................................................................................... 88

Safety Plan ................................................................................................................................ 89

Table of figures

Figure 1 Machines Distribution .................................................................................................... 36

Figure 2 Machines Dimensions .................................................................................................... 36
Figure 3 Machines Sequence to Produce Potato Box .................................................................. 38
Figure 4 Machines Sequence to Produce Pizza Box ................................................................... 38
Figure 5 Machines Sequence to Produce Shoes Box .................................................................. 39
Figure 6 Machines Sequence to Produce Painting Rolls ............................................................. 39
Figure 7 Arena Software Results .................................................................................................. 40
Figure 8 Demad of 2016 ............................................................................................................... 41
Figure 9 From-To chart results for the current layout ................................................................. 43
Figure 10 From-To chart results for the new layout ..................................................................... 44
Figure 11 New layout for Machine Distribution........................................................................... 45
Figure 12 Request Email to SHANGAI CO. ................................................................................ 48
Figure 13 Conforming Email from SHANGAI COz .................................................................... 48
Figure 14 Conveyor's Specifications ............................................................................................ 49
Figure 15 Conveyor Installation ................................................................................................... 50
Figure 16 Designed Organizational Structure............................................................................... 78

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Chapter 1 - Introduction
1.1- Company history
Top pack one is a company located in Beqaa, which produce cartons based on the demand of the
customers. It came from Syria two years ago due to war with all its machines and some of its
employee, after it has been in Lebanon the managers of the company bought some new machines
because they thought they need them to produce more quantity of cartons.

Top Pack one is a profit private sector association representing stakeholders from the food and
packaging sectors in Lebanon. It stands as a national central point for all economic operators
concerned with packaging some of which include: manufacturers, users, converters, suppliers,
and designers, testing institutions, packaging specialists, providers of trainings and educational
programs and students.

1.2- Mission Statement

Top Pack's mission is to address key issues across the packaging value chain, from
improving packaging and labeling to increasing market access of Lebanese products for
export markets.

1.3- Top Pack Objectives

The main objective of the packaging center is to increase the competitiveness of Lebanese
products on export markets through the improvement of packaging, and to ensure their
conformity with international standards for packaging & labeling.

This is implemented through consultancies & trainings provided by the center, packaging
promotion among the general public, facilitation of access to laboratory testing, dissemination of
information through publications and over the net, and the setting of a platform for the exchange
of ideas and experience between members and monitoring packaging regulations on the
Lebanese & international levels.

7
1.4 Top Pack Products

Potato Box Shoes Box Pizza Box

Carton Painting Rolls

1.5 Top Pack different departments

The company consists of three sections, the first section is the sales section and the
administration where contracts take place and the orders come from there, the second section is
the manufacturing of the components where there are twenty machines with 30 employees
working on them to produce the components needed for every product. Finally, the last section is
the storage section where finished products are stored there and some parts used for
maintenance.

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1.6 - Company Assessing
The products produced by the firm are four types; potato box, shoes box, pizza box and cartons
rolls used while painting to keep the floor clean. The customer comes and places an order for
specific tons of such a product and the manager gives him a due date to deliver him his demand
but because the company isnt well organized, customers satisfaction decreases.
The aim of our project is to improve efficiency of work while maintaining low expenses on the
company in order to increase the production and fulfill more demands.
After assessing the firm and knowing the current situation and creating a complete knowledge
about everything consisted in the production of cartons, to apply our aim there were some
objectives implemented in order to reach the target.
The objectives we are trying to achieve are based on how the company needs them and their
importance if they were applied. These objectives are as the following; design the production
line by studying the current situation of the productions capacity and the demand and obtaining
where there is opportunity loss and fix them, apply new facility layout because there is time loss
and useless machines, creating new organizational structure of the company by placing the right
person in the right place, apply a safety system to decrease danger and reduce the costs due to
injuries, and apply the right decision for maintenance to decrease costs either by preventive,
breakdown or as for a visitor.

1.7 Problem Discussion

These objectives we are trying to achieve are because of the problems the company facing in its
production. And from the assessment of the firm there was main problems that need to be solved
and in a fast way to prevent huge losses on the long term. To begin with the organizational
structure of the company, it has two managers and both of them give orders without any
combination between them and everyone thinking hes doing the right thing, and even if
someone took a decision, he doesnt care if the other manager has a point of view differs than
him. Moreover, number of labors needed is more than the required number because there is a
misunderstanding from one of the managers that adding more labors isnt the solution of
increasing the production. Besides that, the current place of the machines leads to a huge loss of
time because there is not sequential order of the machines and they are placed far from each
other, so the transfer time is too big and needs to be less than the current time to increase the
production rate and deliver the demand on time. Furthermore, the maintenance staff presents in

9
the company is consisted of three labors and their tasks are of tiny work that could be achieved
by any labor working there, such as changing the oil of the machines, greasing and some electric
problems. If such a machine presents in the company breakdowns, there is not any maintenance
staff that can solve the problem to continue the production of the machines and achieve the
required demand. In this situation the company asks for maintenance visitors from outer
countries to solve breakdown. The period needed in maintaining the machine with the time
needed for the visitors to come is approximately one week, so the company stops working for the
same period of one week. This is a loss of opportunity and costs the company a lot due to
penalties of delivering late demands. In addition to the problem found, there is a lack of safe
environment concerning personnel protective equipment and fire extinguishers. To improve that
safety requirements should be installed. Three month ago a fire happened in the automated line
and caused the damage of three machines and there was no fire extinguisher present to put out
the fire and that costs the company fifty thousand dollars to bring new machines and to pay for
the labors that got injured, and the insurance didnt pay the cost of the machines because the
safety requirements the company should have arent installed in it.

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Chapter 2
2.1- Identification of the Project and Motivation:

The main aim of the project is to maximize the profit and minimize the costs and delivering the
demand on time that leads to increase the customer satisfaction.

Decrease material handling time using the proper facility layout.

Increase the production line efficiency using the proper facility layout.
Decrease the number of breakdowns of the machines.
Enhancing Safe environment.
Distributing tasks for the required employees.
Decrease lost time in maintaining machines.
Achieve the annual demand.

2.2- Requirement and specification:

Software that were used in our project are:

1. Arena simulation to ensure the efficiency of the new layout for the machines and how the
problem was solved.
2. Microsoft Visio to draw the new organizational structure and declaring job description.
3. Google Sketch-up which help us draw the whole company with the new facilities
installed to see the new layout in a better way.

Microsoft Excel to solve From-To Chart Method that provided the efficiency of the facility
layout suggested.

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2.3- Deliverables:

Applying a new facility layout that decreases material handling time and increases the
efficiency of the production line.
Applying a new maintenance strategy that balance between predictive and preventive
maintenance.
Applying a new safety plan to ensure a safe environment for the machines and labors and
to decrease high medical bills.
Designing a new organizational structure with proper job description to clarify who is
responsible on whom and who report to whom.
Installing a conveyor between the machines to decrease material handling time and
decrease the number of labors.

2.4- Technical and non-technical constraints:

The first constraint we faced was that we werent able to enter the company for collecting data
more than two days per week and only on Friday and Saturday. Second, they didnt give us all
the data we need and some of them werent true 100%. Third restriction was that we werent able
to talk with the labors for a long period of time and taking photos inside the company was
forbidden.

2.5- Incorporation of constraints:

As we said, we werent able to enter the company to monitor the current situation only two days
per week and that affected our solutions because we werent able to monitor the daily production
which didnt permit us to collect the efficient data we need about the lost time and why they
arent able to achieve the demand.

As for the other constraints, they didnt affect our solution.

12
Chapter 3- Literature review
3.1- Organizational Structure
A Managers Challenge Steve Jobs Transforms Apple Computer

What is high-performance management?

In 1976, Steven P. Jobs sold his Volkswagen van, and his partner Steven Wozniak sold his two
programmable calculators. They then invested the proceeds of $1,350 to build a computer circuit
board in Jobs garage. So popular was the circuit board, which was developed into the Apple II
personal computer (PC), that in 1977 Jobs and Wozniak incorporated their new business as
Apple Computer.

By 1985 Apples sales were almost $2 billion; nevertheless, in the same year Jobs was forced out
of the company he founded. Jobs approach to management was a big part of the reason he lost
control of Apple.1 after Apple was founded, Steve Jobs saw his role as leading the development
effort to create new and improved PCs, and he started many different project teams to develop
new and different PC models. Although this was a good strategy, Jobs management style was
often arbitrary and overbearing and caused many problems. He often played favorites among
various employees and teams, championing some (e.g., his personal project, the Lisa PC team),
against others (the Macintosh team). His actions led to fierce competition among project teams,
many misunderstandings, and a great deal of distrust among members of competing team.

Moreover, Jobs abrasive management style brought him into conflict with other managers,
particularly John Scullery, Apples CEO. Employees became unsure whether Jobs (the
chairman) or Scullery (the CEO) was leading the company, and both managers were so busy
competing for control of Apple that neither had the time or energy to ensure that Apples
resources were being used efficiently. For example, little attention was paid to evaluating the
performance of the project teams, and there was not even a budget in place to curb the teams
research and development spending. Whats the result? Apples costs started to soar and its
performance and profits fell. Apples board of directors became convinced that Jobs
management style was the heart the problem and asked him to resign. After leaving Apple, Jobs
moved on to new ventures. He founded NEXT, which developed a powerful new PC, and Pixar,
a computer animation company that become a major success story after it made movies such as

13
Toy Story and Finding Nemo. In both these companies, Jobs developed a clear vision for
managers to follow and built strong management teams. In the meantime, Apple was struggling
to compete against Michael Dells new, low cost PCs and Microsofts Windows software.
Apples performance was declining rapidly, and in 1996 Jobs convinced Apple to buy NEXT for
$400 million and use its powerful operating system in the next generation of Apple PCs. In 1997,
Apple asked Jobs to take full control of the company and once again become its CEO.3 Jobs
agreed and quickly began to put the new management skills he had developed over time to good
use. Understanding, more than he had ever before, that what a company needs is clear leadership
and a guiding mission to energize and motivate employees, the charismatic Jobs strove to create
a new vision for Apple. Jobs decided that to survive, Apple had to introduce advanced PCs and
related equipment.

He instituted an across-the-board planning process, established clear company objectives, and

created a team structure that allowed programmers and engineers to pool their skills to develop
new PCs. He delegated considerable authority to the teams, but he also established strict
timetables and challenging stretch goals, such as bringing new products to market as quickly
as possible, for these groups to achieve. One result of these efforts was Apples sleek new line of
iMac PCs, which were quickly followed by a wide range of futuristic PC related products. To
profile the companys innovations, Jobs opened a nationwide chain of Apple stores. Jobs most
recent attempt to revolutionize Apple and raise its performance came in 2003, when he
announced that Apple was starting a new service called iTunes. Through iTunes, an online music
store, people could legally download songs from the Internet by paying a dollar a song. At the
same time, Apple introduced its iPod music player, which can store thousands of songs, and the
player quickly became a runaway success. In 2004, Apple announced its new mini iPod, which
was such a success that retailers could not keep it in stock. By then, Apple had 70 percent of the
online music download business! 4 In 2004, it seemed that a new Apple was emerging. Analysts
credit Apples rising performance to the management skills Jobs was forced to develop after his
ouster from the company he had founded.[1]

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B.A.R. and Grille Restaurant

In 1998, Bob and Amanda Richards (hence B.A.R.) trained as chefs and obtained the capital they
needed to open their own restaurant, the B.A.R. and Grille, a 1950s-style restaurant specializing
in hamburgers, hot dogs, French fries, fresh fruit pies, and fountain drinks. At the beginning,
with the help of one additional person hired to be a waiter, Bob and Amanda took turns cooking
and waiting on tables. The venture was wildly successful. The combination of good food, served
in a Happy Days atmosphere, appealed to customers, who swamped the restaurant at lunchtime
and every night. Right away Bob and Amanda were overloaded. They worked from dawn to
midnight to cope with all the jobs that needed to be done: buying supplies, preparing the food,
maintaining the property, taking in money, and figuring the accounts. It was soon clear that both
Bob and Amanda were needed in the kitchen and that they needed additional help. They hired
waiters, busboys, and kitchen help to wash the mountains of dishes. The staffs worked in shifts,
and by the end of the third month of operations Bob and Amanda were employing 22 people on a
full- or part-time basis. With 22 staff members to oversee, the Richardss confronted a new
problem. Because both of them were working in the kitchen, they had little time to oversee what
was happening in the dining room. The waiters, in effect, were running the restaurant. Bob and
Amanda had lost contact with the customers and no longer received their comments about the
food and service. They realized that to make sure their standards of customer service were being
met, one of them needed to take control of the dining room and supervise the waiters and
busboys while the other took control of the kitchen. Amanda took over the dining room, and she
and Bob hired two chefs to replace her in the kitchen. Bob oversaw the kitchen and continued to
cook. The business continued to do well, so they increased the size of the dining room and hired
additional waiters and busboys. It soon became clear that Bob and Amanda needed to employ
additional people to take over specific tasks because they no longer had the time or energy to
handle them personally. To control the payment system, they employed full-time cashiers. To
cope with customers demands for alcoholic drinks, they hired a lawyer, got a liquor license, and
employed full-time bartenders. To obtain restaurant supplies and manage restaurant services such
as cleaning and equipment maintenance, they employed a restaurant manager. The manager was
also responsible for overseeing the restaurant on days when the owners took a well-deserved
break. By the end of its first year of operation, the B.A.R. and Grille had 50 full and part-time
employees, and the owners were seeking new avenues for expansion. Eager to use their newly
15
acquired skills to create yet more value, the Richardss began to search for ideas for a new
restaurant. Within 18 months they opened a waffle and pancake restaurant, and a year later they
opened a pizza restaurant. With this growth, Bob and Amanda left their jobs in the B.A.R. and
Grille. They hired shift managers to manage each restaurant, and they spent their time managing
central support functions such as purchasing, marketing, and accounting, training new chefs, and
developing menu and marketing plans. To ensure that service and quality were uniformly
excellent at all three restaurants, they developed written rules and procedures that told chefs,
waiters, and other employees what was expected of themfor example, how to prepare and
present food and how to behave with customers. After five years of operation, they employed
over 150 people full or part time in their three restaurants, and their sales volume was over $2
million a year.[2]

Starbucks Coffee Companys Organizational Structure

Starbucks Coffee Company is the largest coffeehouse chain in the world. The firms industry
leadership is partly attributed to the appropriateness of its organizational structure. A companys
organizational structure influences management and leadership, communication, change, and
other variables critical to business success. Starbucks has evolved to have an organizational
structure that matches current business needs. This organizational structure is unique to
Starbucks, although it can be characterized based on a conventional typology of organizational
structures. Starbucks succeeds because its organizational structure grows with the business,
enabling the company to optimize processes and the quality of its goods and services.[3]

Nucor Corporation and the US steel industry

How important is the corporate culture to Nucors success? Management is free to point out that
their advantage does not stem from proprietary technology. After all, most of their innovations
including thin-slab casting and the use of iron carbide are based on technology developed by
other firms. While they pioneered the modifications to make thin-slab castingpossible, numerous
other minimally are hot on their heels in this product segment. Nucors plants are open to firms
seeking to benchmark their operations, including other steel producers. When other firms tour a
plant, they may see the same equipment as in their plant. Many comment on the culture of the
plant. One visitor from an integrated producer commented that at his plant the culture is

16
adversarial, management versus employee, with no trust between the parties. Us versus them
refers to workers versus management and production. In contrast, at Nucor, workers are seen
striving together as a team, helping each other and working towards a common goal: the
production of a high volume of low-cost, quality steel.24 Iverson explains Nucors success as
being based on a combination of the technology used and the culture of the organization. He is
unsure if technology is 20, or 30, or even 40 per cent but hes sure it is less than half of the
formula for Nucors achievements. The culture that Nucor instills is focused primarily on the
long-term health of the organization. For example, debt is avoided, start-up costs are not
capitalized but rather are expensed in the current period, and depreciation and write-offs lean
towards the detriment of short-term earnings. Iverson is adamant about not bowing to short-term
pressures to manage earnings or spread dividends evenly over a quarterly basis. He refuses to do
it. He compares companies that try endlessly to meet short-term projections at the expense of a
long-term approach to dogs on a leash trying to perform a trick to satisfy the stock market. He
admonishes short-term share speculators to stay away from the company. He compares Nucor to
an eagle and invites long-term investors to soar with the company.[4]

Designing Organizations for Dynamic Capabilities.

How can organizations put dynamic capabilities into practice? This article focuses on the power
of organizational design, showing how managers can harness new organizational forms to build a
capacity for sensing, shaping and seizing opportunities. Fast-moving environments favor open
organization and self-organizing processes that quickly convert individual capabilities into
actionable collective intellect. However, such self-organizing processes require managers to
design and execute them. Using Valve Corporation as a case example, this article shows how
new design principles--such as polyarchy, social proofs, and new forms of open organization--
allow organizations to build dynamic capabilities for sustained innovation in dynamic
environments.[5]

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Industrial Structures as Competitive Factor in organization development

This paper analyses Organization Development theory, thinking of structure as important

factor for company competitiveness. Companys structure is presented as important
instrument Organization Development theory, author broadly analyses the change process as
core point in building company structure, the level of responsiveness of
organizational structure to external and internal environment fluctuations. The change concept
in organization structure is discussed from the efficiency
point. Organization Structure models are presented as change instrument for controlling
environmental change. The process of change is in focus in this paper, soon as external
environment is becoming more and more dynamic and unpredictable.[6]

3.2- Maintenance:
Effective Preventive Maintenance Scheduling

Maintenance is an important system in operation. In an era where industries are focusing on 24

hours operation to maximize production, machines are pushed to its absolute limits to cope with
this demand. As utilization increases, the rate at which the machine parts get worn out increases
thus the frequency of failure increases rapidly. To combat this problem and ensure that machines
continue to operate at its optimum, maintenance work is carried out. One of the branches of
maintenance technique which is carried out to prevent occurrences of failure before it happen is
known as Preventive Maintenance (PM). However, performing PM may not be as easy as it
requires great cooperation from the maintenance, production and management departments. This
paper is written to study the aspects of effective PM and to analyze the causes of inefficient PM
activity in a case study company and its implications. Another important approach taken is to
investigate the causes of machine downtime by performing a root cause analysis. Affinity
diagram was formed to highlight several issues with implementation of PM and a further analysis
using Tree Diagram enabled to generate possible solutions. The findings of this provides prove
that separating the machines into critical and non-critical categories, each having a different
priority level is a crucial step towards solving the issue at hand and ensuring the reduction in
downtime occurrence in addition to reducing the workload of the technicians.[7]

18
Preventive Maintenance Development

This article intends to present a project in a furniture manufacturing factory, carried out to
improve the efficiency of preventive maintenance actions, decreasing the number of failures and
downtime of equipment, and maintenance costs. An initial diagnosis allow identifying the main
weaknesses of the maintenance department, especially concerning preventive maintenance, one
the pillars of TPM methodology and on which the factory is based for maintaining their
equipment. There was a small percentage of planned preventive interventions actually performed
and an unbalanced allocation of tasks by the available resources. In order to improve the
efficiency of maintenance staff, standard preventive maintenance instructions was developed. An
approach to the planning and allocation of tasks throughout the year by service technicians was
also defined. There was a positive impact of the improvement actions and the new way of tasks
allocation led to a better balance of the tasks among service technicians, as well as an increase in
the number of performed preventive interventions. [8]

Reliability Based Maintenance Strategy Selection in Process Plants

The importance of maintenance function has increased due to its role in keeping and improving
the availability, product quality, safety requirements and operating cost levels of the process
plants. Accordingly, maintenance strategy selection became one of the most important decision
making activity in the industry. This paper proposes a general approach to implement Reliability
Centered Maintenance (RCM) in process plants. RCM is a recently evolved maintenance
strategy that incorporates all the advantages of traditional maintenance strategies. More
precisely, RCM selects the most appropriate and tailor made maintenance strategy for all the
equipment in the plant based on its criticality score and reliability parameters. RCM
implementation requires the collection and analysis of historical failure and maintenance data to
determine current condition of the equipment. Subsequently, maintenance strategy is framed for
the unit by following Analytical Hierarchy Process (AHP) based methodology. This should be
done by taking expert opinions of personals from both the maintenance and production
departments. RCM implementation model presented here is validated with the maintenance
history data of a process plant manufacturing titaniumdioxide with a production capacity of

19
20,000 metric tonnes per annum. Currently the firm follows a combination of scheduled and
breakdown maintenance strategies. However, RCM implementation in this plant is justified by
the maintenance simulation results that revealed the current poor availability and performance of
the equipment.[9]

A framework for effective management of condition based maintenance

programs in the context of industrial development of E-Maintenance
strategies

This paper presents a framework and a template to clarify the concepts and structure behind a
given condition-based maintenance solution. This paper discusses about the necessity of CBM
management approaches in complex contest like E-Maintenance strategies. The template will
complement the RCM tables, and that will practically compile the information of the current
CBM solutions. Any future change, improvement, of CBM program will be very much
facilitated using the template provided. In addition, the framework and template is exemplified
for an electrical power transformer CBM use case.

CBM (Condition Based Maintenance) solutions are increasingly present in industrial systems
due to two main circumstances: rapid evolution, without precedents, in the capture and analysis
of data and significant cost reduction of supporting technologies. CBM programs in industrial
systems can become extremely complex, especially when considering the effective introduction
of new capabilities provided by PHM (Prognostics and Health Management) and E-maintenance
disciplines. In this scenario, any CBM solution involves the management of numerous technical
aspects that the maintenance manager needs to understand, in order to be implemented properly
and effectively, according to the companys strategy. This paper provides a comprehensive
representation of the key components of a generic CBM solution, this is presented using a
framework or supporting structure for an effective management of the CBM programs. The
concept symptom of failure, its corresponding analysis techniques (introduced by ISO 13379-1
and linked with RCM/FMEA analysis), and other international standard for CBM open-software

20
application development (for instance, ISO 13374 and OSA-CBM), are used in the paper for the
development of the framework. An original template has been developed, adopting the formal
structure of RCM analysis templates, to integrate the information of the PHM techniques used to
capture the failure mode behavior and to manage maintenance. Finally, a case study describes the
framework using the referred template.[10]

3.3- Facility plan and design:

Efficiency Improvement of a Plant Layout

Facilities layout is a systematic and functional arrangement of different departments, machines,

equipment and services in a manufacturing industry. It is essential to have a well-developed plant
layout for all the available resources in an optimum manner and get the maximum out of the
capacity of the facilities. The efficiency of production depends on how well the various
machines, services production facilities and employees amenities are located in a plant. This
research paper aims to study and improve the current plant layout and are analyzed & designed
by using string diagram. An Attempt is made to simulate the current and proposed factory layout
by using ARENA software. Efficiency of the current & proposed plant layout are calculated.[11]

Production Layout Optimization for Small and Medium Scale Food Industry

According to the number of competitors in the global marketplace, it is important for companies
to reduce their costs and expenses in order to be a sustainable competitor. As a case study, a
company producing meatball and soup paste located at Bayan Lepas, Penang was selected with a
view of finding a sustainable layout that minimizes travel distance, material handling and losses.
A few steps were taken to achieve this aim. Firstly, several layouts were generated using two
types of construction techniques, viz. Systematic Layout Planning (SLP) and Graph Based
Theory (GBT). In the next step, the Efficiency Rate (ER) of each layout was calculated. The
layout with the highest ER was then selected and optimized by using Pairwise Exchange Method
(PEM). The result showed that the ER of the selected layout improved from 90.43% to 94.78%
after optimizing. Based on this study, it was found that even the best selected layout could be
improved, and it is necessary to conduct facility and layout planning before any factory set up to
ensure sustainable process and reduce losses.[12]

21
Dynamic Facility layout problem in footwear industry

Facility layout problem (DFLP) deals with the arrangement of machines in a site as to minimize
the sum of materials handling and re-layout costs by considering multi periods. The DFLP
studies in the literature provide several different algorithms and utilize the well-known test
problems to assess their performance. However, real life applications are overlooked. The
industries such as footwear and clothing are prone to seasonal demand changes. Therefore, time
horizons and layout/re-layout of the machines within the facility should be studied carefully.
This study considers a footwear facility and several scenarios are generated by using the real life
data. A clonal selection based algorithm is proposed to solve the real life DFLP. The
performance of the algorithm, further the effect of time periods on solution quality and
applicability of the results are tested and promising results are obtained. [13]

FACILITY LAYOUT IMPROVEMENT USING SYSTEMATIC LAYOUT PLANNING

(SLP) AND ARENA

The objective of this thesis is to improve the production floor layout of the MTA department and
to evaluate the proposed alternative layouts using ARENA simulation. This project is conducted
at Agilent Technologies, Inc., an Electronics Manufacturing company located in Bayan Lepas,
Penang. The major problem faced by the company is high cross-over frequency for E-Cal and
Coaxial Waveguide Adapter products between two buildings. There is high flow intensity
between departments which have high interrelationship. This leads to high travelling time and
high travelling cost. Two alternative layouts are proposed using the 11 steps in Systematic
Layout Planning, which is a systematic way of generating layout alternatives. The proposed
alternative layout involves transferring the departments which have high interrelationship close
to each other. The proposed alternative layouts are evaluated using ARENA simulation student
version. The best alternative is chosen based on the performance measures which have the most
significant improvement, which are total travel distance, total travel time, total travel cost,
number of cross-over, output, average resource utilization, total average WIP level, total average
waiting time and total time spent in the system. The best alternative layout is Layout Design 2,
which does not need extra space for re-layout. Total travel distance for Coaxial Waveguide
Adapter will reduce significantly by 78.1% and for E-Cal the total travel distance will reduce by

22
62.87%. Total travel time for coaxial waveguide adapter is reduced by 86.42 % while for e-cal is
reduced by 75.17%. This will subsequently reduce cost of travel for coaxial waveguide adapter
by 86.42% and for E-cal is reduce by 68.09%. The output for coaxial waveguide adapter will
increase 55.30 % as well. For e-cal the output will increase by 9.05 %. [14]

Automation of cell production system for cellular phones using dual-arm

robots

The demands placed on automation of cell production processes for IT products are becoming
increasingly sophisticated. Dual-arm robots are drawing particular attention as a process solution
because they offer flexibility and can work in a similar manner to a human operator. In this
paper, we propose an automation system for cellular phone packing processes that uses two dual-
arm robots. The applied robots are designed with specifications that meet the requirements of the
cellular phone packing tasks. In addition, a robotic cell production system is proposed that
applies a task allocation method to perform an efficient packing job for cellular phones. In
particular, each task is assigned with the intention of reducing the takt time , which is the time
taken to finish a single product in the production line and to avoid collisions between the two
robots. Finally, we implement some of our results in a demonstration of a packing job that
involves filling five unit boxes with seven kinds of accessories.[15]

3.4- Safety Plan

Fault Detection, Supervision and Safety of Technical Processes

The safe and reliable operation of technical systems is of great significance for the protection of
human life and health, the environment, and of the vested economic value. The correct
functioning of those systems has a profound impact also on production cost and product quality.
The early detection of faults is critical in avoiding performance degradation and damage to the
machinery or human life. Accurate diagnosis then helps to make the right decisions on
emergency actions and repairs. Fault detection and diagnosis (FDD) has developed into a major
area of research, at the intersection of systems and control engineering, artificial intelligence,
applied mathematics and statistics, and such application fields as chemical, electrical, mechanical
and aerospace engineering. IFAC has recognized the significance of FDD by launching a
triennial symposium series dedicated to the subject.The SAFEPROCESS Symposium is

23
organized every three years since the first symposium held in Baden-Baden in 1991.
SAFEPROCESS 2006, the 6th IFAC Symposium on Fault Detection, Supervision and Safety of
Technical Processes was held in Beijing, PR China. The program included three plenary papers,
two semi-plenary papers, two industrial talks by internationally recognized experts and 258
regular papers, which have been selected out of a total of 387 regular and invited papers
submitted. Discusses the developments and future challenges in all aspects of fault diagnosis
and fault tolerant control 8 invited and 36 contributed sessions included with a special session
on the demonstration of process monitoring and diagnostic software tools[16]

Lees' Loss Prevention in the Process Industries: Hazard Identification, Assessment and
Control

Safety in the process industries is critical for those who work with chemicals and hazardous
substances or processes. The field of loss prevention is, and continues to be, of supreme
importance to countless companies, municipalities and governments around the world, and Lees
is a detailed reference to defending against hazards. Recognized as the standard work for
chemical and process engineering safety professionals, it provides the most complete collection
of information on the theory, practice, design elements, equipment, regulations and laws
covering the field of process safety. An entire library of alternative books (and cross-referencing
systems) would be needed to replace or improve upon it, but everything of importance to safety
professionals, engineers and managers can be found in this all-encompassing three volume
reference instead. The process safety encyclopedia, trusted worldwide for over 30 years Now
available in print and online, to aid search ability and portability Over 3,600 print pages cover
the full scope of process safety and loss prevention, compiling theory, practice, standards,
legislation, case studies and lessons learned in one resource as opposed to multiple sources. [17]

Practical Industrial Safety, Risk Assessment and Shutdown Systems

This is a book for engineers that covers the hardware and software aspects of high-reliability
safety systems, safety instrumentation and shutdown systems as well as risk assessment
techniques and the wider spectrum of industrial safety. This highly practical book focuses on
efficiently implementing and assessing hazard studies, designing and applying international
safety practices and techniques, and ensuring high reliability in the safety and emergency
shutdown of systems in your plant. This book will provide the reader with the most up-to-date

24
standards for and information on each stage of the safety life cycle from the initial evaluation of
hazards through to the detailed engineering and maintenance of safety instrumented systems. It
will help them develop the ability to plan hazard and risk assessment studies, then design and
implement and operate the safety systems and maintain and evaluate them to ensure high
reliability. Finally it will give the reader the knowledge to help prevent the massive devastation
and destruction that can be caused by today's highly technical computer controlled industrial
environments. Helps readers develop the ability to plan hazard and risk assessment studies, then
design, implement and operate the safety systems and maintain and evaluate them to ensure high
reliability Gives the reader the knowledge to help prevent the massive devastation that can be
caused by today's highly technical computer controlled industrial environments Rather than
another book on the discipline of safety engineering, this is a thoroughly practical guide to the
procedures and technology of safety in control and plant engineering/ [18]

Case 4

On March 7,2001,a 36-year-old male paper factory worker died from crushing injuries after
being caught by the ram inside a two-stage horizontal baling machine (Figure 2).The victim,
working alone in the warehouse area of a paper plant, was compacting waste paper when he
entered the compression chamber (either through the access door or from the top of the feed
chute) to clear a jam and was caught by the machine 's hydraulic ram. Investigation revealed that
the baler was not shut off and locked out before the victim entered it and that the safety interlock
on the compression chamber door may have malfunctioned, allowing the machine to operate
with the door in the open

Position [NIOSH 2001].[19]

Figure 2. Automatic two-stage horizontal baler.

25
Case 5

On July 27, 2000,a 16-year-old male produce market worker died as a result of crushing injuries
from a baling machine used to compress waste cardboard boxes for disposal and recycling
(Figure 3).The victim, working alone in the basement of a small produce market, was crushing
and baling cardboard boxes when he was caught in the hydraulic ram. An investigation of the
incident by the police found that the baler was being operated improperly, with the loading
chamber door open and the door safety interlocks bypassed with a wad of paper. When the
victim was found, it appeared that he had been starting a new bale. The wire had been threaded
through the compression chamber and secured to the outside of the compactor, and a flattened
box was in place in the base of the compactor chamber. The victim may have leaned over into
the compression chamber trying to quickly adjust a tie wire or the base box when he was caught
by the ram as it moved downward [NIOSH 2000b].[19]

Figure 3. Vertical down stroke baler.

Case6

On September 30, 1999,a 24-year-old male machine operator died from crushing injuries after he
fell into a baling machine used to compress and bale waste cardboard for recycling (Figure
4).The victim worked alone loading, compressing, and moving completed bales to a storage area.
The victim was last seen around 5 p.m. during a break. Between 5:30 and 7 p.m., the victim may
have climbed up the outside walls of the conveyor to dislodge a piece of cardboard that was
jamming the conveyor belt an act he had been observed performing in the past. Workers
reported that occasionally cardboard would become lodged in the top part of the hopper just

26
under the conveyor (an area that measures 28 by 8 inches), causing the hopper to jam. During
this action, the victim may have lost his balance and fallen into the compression chamber,
thereby tripping the automatic sensor that indicated that the chamber was full and caused the
baler to cycle [NIOSH 2000c].[19]

Figure 4. Automatic conveyor-fed baler.

CONCLUSIONS
Compacting and baling equipment has widespread use across varied industries. The incidents
discussed in this Alert involve hazardous work practices, the lack or failure of safety devices,
and failure to develop and implement standard lockout/tagout procedures. Information from the
FACE investigations indicates that workers suffered fatal injuries when they entered the
compactor to clear a jam, fell into the travel path of the ram, or reached into the ma- chine while
performing operational procedures. Employers who recognize the need to implement
lockout/tagout procedures during maintenance may not fully appreciate that clearing jammed
material poses a similar risk of injury to workers and should be conducted using standard
procedures that include appropriate hazardous energy control methods.

Failure to de-energize the equipment and ensure that the device could not be inadvertently
reactivated contributed to some of these fatalities. In addition, compacting and baling equipment
and any attached conveyors could have been interconnected so that a single lockable device
could de-energize and isolate the power to both machines during lockout/tagout procedures.
Failure of safety devices and lack of instruction and training in the operation of the equipment
may have contributed to some of these deaths. The circumstances involved in these cases
indicate that workers may not fully appreciate the hazards of entering or working near feed

27
hoppers of energized compacting and baling equipment
RECOMMENDATIONS

NIOSH recommends that employers take the following measures to protect workers from injury
when operating or working near refuse compacting and baling equipment.

Lockout/tagout

Because ram motion ceases during a jam, workers may not recognize that the machine remains
operational and the ram could activate inadvertently unless the power supply for the machine is
disconnected. Whenever unjamming, performing maintenance, or repairing a compactor or baler,
the machine should be de-energized and OHSA 's lockout/tagout procedures [29 CFR 1910.147
]should be followed. At a minimum, lockout/tagout procedures should include the following
elements:

A statement of how the procedure will be used

Training for workers in the specific hazards of each machine

Identification and marking of power disconnects
The steps required to shut down,isolate,block,and secure power to the machines
The steps designating the safe placement,removal,and transfer of lockout/ tagout devices
and the person who has the responsibility for them
The specific requirements for testing machines or equipment to determine and verify the
effectiveness of locks, tags,and other energy control measures
Notification of workers by the employer or an authorized worker before lockout or tagout
devices are applied and before they are removed from the machine

28
Machine Guarding

Compactors and balers should be equipped with machine guards and safety interlocks to prevent
worker injury, and interlocks should be designed so they are not easily bypassed. All machines
should be equipped with safety interlock devices that will immediately stop the machine should a
worker attempt to gain access to a ram or the travel zone of the ram while the machine is
operating. Currently manufactured compactors and balers conform to ANSI standards that
specify point-of-operation guards to prevent workers from reaching into an operating machine
and interlocked control systems that interrupt or reverse the ram 's motion if the compression
chamber doors are opened. However, guards and interlocks may be deliberately bypassed or may
not be present on some older machines.

Where conveyors are used to feed materials into compactors or balers, workers may mistakenly
believe that turning off the conveyor also prevents the compactor or baler from operating. To
protect against this, compacting and baling equipment and any attached conveyors should be
interconnected so that a single lockable device can be used to de-energize and isolate the power
to both machines. In addition, all emergency stop devices should be interconnected so that the
activation of any emergency stop will shut down both the conveyor and the compactor or baler.

ANSI Z245.2, and Z245.5, and 29 CFR 1910.212 provide information about machine guarding.
These standards also provide information about modification of older equipment to improve
safety. Any modifications made to equipment should be done only by qualified persons. In
addition, descriptions and illustrations of methods that can be used for providing safeguards for
balers and compactors can be found in the OSHA Publication entitled Concepts and Techniques
of Machine Guarding [OSHA 1992]. Machine guards and safety interlocks should be frequently
checked by safety personnel, supervisors, and workers to assure that they are in proper working
order.

29
Work Practices and Procedures

Jams are common occurrences in compacting and baling machines. Employers should implement
standard procedures for dealing safely with common events such as material jams. Employers
should train their workers in these safe work procedures and strictly enforce adherence.
Fatalities have occurred when machines were activated while the operator was unaware that a
coworker was inside the compacting chamber. Employers should establish procedures requiring
machine operators to account for the location of coworkers before activating compactor or baler
rams.

Safe Access and Fall Protection

because jams often occur at the openings to feed chutes of conveyor-fed machines, workers may
use the conveyor as a means of access to the jam. Platforms incorporating stairs and standard
railings should be provided near the openings of feed chutes to allow safe access for clearing
jams. In addition, employers should consider providing workers with fall protection devices,
harnesses, and lanyards to prevent them from falling into the feed chute if they inadvertently lean
over the platform railing while clearing jammed material. Although neither of these measures
eliminates the need to follow appropriate lockout/tag out procedures, their use could provide
extra protection for workers.

Training

Employers should train workers to recognize the hazards of operating or working near
compactors and balers. Procedures and safe work practices addressing problems that may
develop during machine operation should be developed and implemented. At a minimum,
training should include the following elements:

A description and identification of the hazards associated with particular machines

The safeguards themselves, a description of how they provide protection, and a list of the
hazards for which they are intended

30
Instructions for using the safeguards

Instructions for removing the safeguards (these should include the circumstances under which
they can be removed and the persons who can remove them most cases, repair and
maintenance personnel only)

What to do (e.g. Contact the supervisor)if a safeguard is damaged, missing, or unable to provide
adequate protection

Protecting Adolescence Workers

Employers should not assign workers under age 18 to service, load, operate, or assist in the
operation of compacting or baling equipment. For cases in which the Compactors and Balers
Safety Standard Modernization Act applies, employers should comply with all provisions of the
Act including ensuring that the compacting or baling equipment meets specified safety
standards and that young workers are limited to loading materials into de-energized equipment.
When training young workers on their job and work procedures, employers and supervisors
should explicitly note restrictions on having young workers load and operate compacting or
baling equipment. All workers in the work setting should be aware of any workers under age 18
and be similarly trained so that they do not assign them to work with compactors or balers and
can notify the employer or supervisor should violations of the policy occur. For stickers that
employers can post on the machine to alert workers of the age requirement.

31
Chapter 4 - Standards Apply
1. Facility plan and design :
a. Applying a new layout for machines by using two methods:
i. String Method
ii. From to Chart Method
2. Maintenance:
a. Developing a new strategy of maintenance which concerning on balancing
between preventive and predictive maintenance.
b. Reliability centered maintenance strategy as a maintenance policy in the
company.
c. Preventive maintenance schedule.
3. Safety plan
a. Applying safety for the whole company beginning with human till machines
4. Organization design
a. Develop an organizational structure for the company.
b. Job description was written for each employee.

32
Chapter 5 -Methodology
This project is divided into Senior Project I and Senior Project II, which has to be
completed in Semester I and Semester II respectively.

Literature review would be done throughout the 2 semesters to have a more detailed background
and theoretical kno

wledge regarding Facilities Planning, Systematic Layout Planning, String Method, From to
Chart, simulation ARENA, Maintenance strategy, Safety plan and organizational structural. This
would provide evidence of familiarity with the areas covered in this study and its classifications.
Apart from that, current trends, direction and research issues were identified. Previous studies,
journal papers, online articles were reviewed critically. Subsequently, evidence what others have
done will guide in the formulation of problem statement and the justification of proper selection
of tools and techniques to be used. After reviewing previous journals and studies, the company
background is discussed briefly. It covers the company profile, organization structure of the
company, understanding the current layout of the company, its manufacturing process, its
maintenance strategies and its policies. Subsequently, the problems faced by the company will be
identified. The scope will be limited to the facilities layout of the company, maintenance, safety,
organizational structure and four of the major high revenue products. The process flow for each
of the product will be observed and documented. The distance travelled by the operator is
calculated. Tools such as String method, From-To-Chart are used. Time studies will be used as
the method of cycle time calculation. At this semester, new layout proposals will be proposed to
improve the facilities layout of the company. Other than that, simulation software, ARENA will
be learnt to enhance skills of constructing the model of the layout plan and flow of product. A
draft report will be send to the supervisor.

In Senior Project II, the model of the proposed improvement layouts will be modeled
using ARENA. The types of data distribution will be justified. The models will be validated and
verified. Experimentation of each layout proposal will be done using the simulation model. The
results will be analyzed and compared with the existing layout.

Finally the results of each alternative layout are compared to select the one with the most
significant improvement to the company.

33
Next step is about maintenance which include: developing a new strategy of maintenance which
concerning on balancing between preventive and predictive maintenance, applying the reliability
centered maintenance strategy as a maintenance policy in the company, develop preventive
maintenance schedule for the whole company and subcontracting professional company to apply
the maintenance strategy.

Third about safety plan an effective fire-fighting equipment must be available to meet all fire
hazards, installing barriers around the machine, installing building alarm system, installing
automatic extinguishers above the machines, fire drills should be conducted frequently as means
of exit will. These drills differ during the various times.

Last but not least, we are going to enhance the organizational design by developing an
organizational structure for the company and writing job description for each employee. The full
report will be submitted to the supervisor upon completion.

34
Chapter 6- Contribution
6.1-Facility Plan and Design
6.1.1- Purpose
Facility layout and design is an important component of a business's overall operations, both in
terms of maximizing the effectiveness of the production process and meeting the needs of
employees. The basic objective of layout is to ensure a smooth flow of work, material, and
information through a system. The basic meaning of facility is the space in which a business's
activities take place. The layout and design of that space affect greatly how the work is done
the flow of work, materials, and information through the system. The key to good facility layout
and design is the integration of the needs of people (personnel and customers), materials (raw,
finishes, and in process), and machinery in such a way that they create a single, well-functioning
system.

"Facility layout must be considered very carefully because we do not want to constantly redesign
the facility," summarized Weiss and Gershon. "Some of the goals in designing the facility are to
ensure a minimum amount of materials handling, to avoid bottlenecks, to minimize machine
interference, to ensure high employee morale and safety, and to ensure flexibility. Essentially,
there are two distinct types of layout. Product layout is synonymous with assembly line and is
oriented toward the products that are being made. Process layout is oriented around the
processes that are used to make the products. Generally, product layout is applicable for high-
volume repetitive operations, while process layout is applicable for low-volume custom-made
goods."

35
Machines Distribution in the Company

Figure 1 Machines Distribution

Machines Dimensions and the Spacing among them

Figure 2 Machines Dimensions

36
6.1.2 Problem Discussion:

Potato Box is the product that has the highest demand among the year, and there is always
shortage in achieving the demands of this product.

Annual Demand = 4,500,000 units

Actual output = 3.25 ton/shift ; 1 Ton = 4,000 unit

Actual Capacity = 3,900,000 units/year

Therefore, there is a shortage of 600,000 units/year.

Material handling Time = 17 min/ton = 55 min/day

Production Rate = 35 units/min

Production loss due to Material handling = 55 min x 35 unit/min = 2000 units/day

Profit Loss = 13 ton/month x 800$/ton = 10,400$/month

5 Transporters needed for material handling 5 x 500$/transporter = 2,500$/month

Other costs needed in Material handling (diesel for the forklift) = 450$/month

Then the Total Cost needed in material handling = 2,500$ + 450$ = 2,950$/month

37
Sequence of the Machines for Every Product

Figure 3 Machines Sequence to Produce Potato Box

Figure 4 Machines Sequence to Produce Pizza Box

38
Figure 5 Machines Sequence to Produce Shoes Box

Figure 6 Machines Sequence to Produce Painting Rolls

39
After assessing the sequence of the production line of each product and simulating it using Arena
Software, we obtained the following results:

Figure 7 Arena Software Results

The idle time of the machines is high and approximately, it is 50% of the time available for
producing products. This problem is a result of the high travelling time between the machines.

6.1.3Given Data from the manager of the company

40
Figure 8 Demad of 2016

Tons present in black are the demand ordered by the customer, while the tons present in red are
the un-achieved demand.

Opportunity Loss for:

January Month: 20 tons of Potato box x 0.2$/unit x 4,000 unit/ton

+ 10 tons of Shoes box x 0.1$/unit x 5,000 unit/ton = 21,000$

February Month: 10 tons of Potato box x 0.2$/unit x 4,000 unit/ton = 8,000$

March Month: 25 tons of Potato box x 0.2$/unit x 4,000 unit/ton = 20,000$

April Month: 35 tons of Shoes box x 0.1$/unit x 5,000 unit/ton = 17,500$

May Month: 10 tons of Painting Rolls x 5$/unit x 200 unit/ton = 10,000$

June Month: 20 tons of Potato box x 0.2$/unit x 4,000 unit/ton

+ 3 tons of Small Pizza box x 0.02$/unit x 20,000 unit/ton
+ 3 tons of Medium Pizza box x 0.05$/unit x 12,500 unit/ton
+ 4 tons of Large Pizza box x 0.09$/unit x 8,333 unit/ton = 42,075$

41
 July Month: 25 tons of Potato box x 0.2$/unit x 4,000 unit/ton
+ 5 tons of Medium Pizza box x 0.05$/unit x 12,500 unit/ton = 23,125$

August Month: 25 tons of Potato box x 0.2$/unit x 4,000 unit/ton

+ 10 tons of Shoes box x 0.1$/unit x 5,000 unit/ton
+ 5 tons of Small Pizza box x 0.02$/unit x 20,000 unit/ton
+ 5 tons of Medium Pizza box x 0.05$/unit x 12,500 unit/ton
+ 5 tons of Large Pizza box x 0.09$/unit x 8,333 unit/ton = 33,875$

6.1.4Different Alternatives

Three alternatives were provided to solve the problem of delivering late Demands and reducing
the costs:

1. Applying Sequential Stationsfor the machines

2. Increasing the number of Labors working on the machines
3. Installing a Conveyor

6.1.4.1- First Alternative

Studying the First Alternative (Applying Sequential Stationsfor the machines)

String Method was applied to choose the best Sequence for the machines and the results obtained
was the following:

For Current Layout

Total number of steps = 30 ; Number of products = 4

Optimal Number of steps for (Potato Box) = 14 steps

Total Number of Steps = 14 x 4 = 56 Steps

Efficiency = 56/90 = 62%

42
 For New Layout

Total number of steps = 40 ; Number of products = 4

Optimal Number of steps for (Potato Box) = 10 steps

Total Number of Steps = 10 x 4 = 40 Steps

Efficiency = 40/40 = 100%

String method was verified by From-To chart:

For Current Layout

Figure 9 From-To chart results for the current layout

43
 For New Layout

Figure 10 From-To chart results for the new layout

After obtaining the best Sequence for the machines, we started changing the places of the
machines and distributing them according to the results obtained from applying String Method.

44
The New Layout

Figure 11 New layout for Machine Distribution

Results Obtained

600,000 units needed to achieve the Annual Demand

Applying Sequential Stations will be done after finishing the shift.

- The worker covers 1 meter in 3 seconds (obtained using a stopwatch)

Material Handling Time Decreased From 17 min/ton (13 min/ton 42 min/day)

Production Rate = 35 units/min

Production loss due to Material Handling = 42 min x 35 unit/min = 1,470 units/day

Profit Loss = 9.5 ton/month x 800$/ton = 7,600$/month

Current Layout New Layout

45
2,000 units/day 1,470 units/day = 522 units/day

522 units/day x 26 days/month = 13,572 units/month 162,864 units/year

162,864 units/year << 600,000 units/year

Therefore,Applying Sequential Stations only is not effective because the obtained capacity of the
production line is less than the required demand.

6.1.4.2Second Alternative
Studying the Second Alternative (Increasing the number of Labors working on the
machines)

After assessing the machines through several observations and knowing the appropriate number
of labors needed for every machine, the following results obtained:

38 labors are employed to work on the following machines but the needed labors obtained should
be 34 labors. Additional cost on the company of (4 workers x 500$/worker = 2,000$).

So we thought to hire the excessive workers for material handling.

46
Results Obtained

The Availability of 9 labors in Transportation decreased the time loss to 10 min/ton

Material Handling Time = 10 min/ton = 32 min/day

Production rate = 35 unit/min

Production loss due to Material Handling = 32 min x 35 unit/min = 1,155 units/day

Profit Loss = 7.5 ton/month x 800$/ton = 6,006$/month

Current Layout New Layout

2,000 units/day 1,155 units/day = 845 units/day

845 units/day x 26 days/month = 21,970 units/month 263,640 units/year

263,640 units/year << 600,000units/year.

Therefore, Hiring the Excessive Labors & Sequencing the Stations is not effective because the
obtained capacity of the production line is less than the required demand.

6.1.4.3Third Alternative
Studying the Third Alternative (Installing a Conveyor)

First, why we thought about automating part of the system?

Automating part of the system save labors, increase efficiency, save time and improve quality.

After studying the time needed for the conveyor to be installed and knowing the specifications,
we searched for companies that manufactures conveyors and contact them to obtain the best
price and buy the suitable conveyor for the production line.

The specifications needed for the conveyor are:

Vc = 25 km/hr
Sp = 0.012 meter
L = 190 meter
Tc = 0.016 min/unit
Tt = 1.5 x Tc = 0.024 min
47
Request Email to SHANGAI CO.

Figure 12 Request Email to SHANGAI CO.

Conforming Email from SHANGAI CO.

Figure 13 Conforming Email from SHANGAI COz

48
Features
1. Economic and practical, as well as high in performance - price ratio.
1. Modularized design and easy assembling.
2. Reliable running. It can be used for forward and reverse transport.
4. Height of support leg is adjustable, with wide application.
5. Surfaces are treated by electrostatic spray, and appearance is beautiful.

Specifications:

Figure 14 Conveyor's Specifications

49
Conveyor Installation

Figure 15 Conveyor Installation

Simulating the new production line with the Conveyor

Results Obtained

Dimensions of the Conveyor = 190*1*1.2 meter

Increase in the production of 0.5 ton/day= 13 ton/month

13 ton/month = 600,000 unit/year

Before Installing After Installing

Conveyor Conveyor

3,900,000 units + 600,000 units = 4,500,000 units/year

4,500,000 units/year will be produced if we installed the conveyor and the demand is achieved.

50
We as engineers, before buying the conveyor and installing it in the company, our duty is to look
if buying the conveyor is feasible and reduce long term costs on the company.

6.1.5- Feasibility Study

Cost of the conveyor 50,000$
n 10 years
Interest rate 2%
Salvage value 0$

AC = 5,566$/year 463$/month

2 labors are needed to operate the conveyor

Labor Cost = 1000$/month ; Other Expenses = 300$/month

Total cost = 1000$/labors + 300$/expenses + 463$/month = 1,763$/month

ROI = 5,000$ - 1,763$ = 3,237$/month 38,844$/year

Payback after 15 months.

6.1.6- Conclusion
Increase production capacity from 3.25 tins/shift to 3.75 tons/shift

No more of losing time due to Material Handling.

Higher quality product will be produced.

Decrease the number of labors from 5 to 2.

Saving money: 3237$/ month = 38844 $/year.

51
6.2- Maintenance
6.2.1- Reliability-centered Maintenance:
RCM is the optimum mix time or interval-based, condition-based, and proactive reactive,
maintenance strategies, rather maintenance practices. These respective strengths than being
applied independently, are integrated take advantage minimizing life cycle costs. In order to
maximize facility and equipment reliability while addition, a user should understand system
boundaries and facility envelopes. System equipment functions, functional failures, and failure
modes, all of which are critical components of the program.

The four maintenance techniques mentioned above usually used for:

1. Breakdown maintenance: Also known as "run to fail maintenance It the practice of

allowing the machines to fail is rather taking any preemptive action. This practice can lead to a
very high maintenance costs, production downtime, the cost of keeping spare parts and overtime
labor are just a few of significant costs that result from these approach.

2. Time based Preventive maintenance: With a few exceptions, preventive maintenance has
been considered the most advanced and effective maintenance technique available for use by
industrial and facility maintenance organizations. A Preventive Maintenance (PM) program is
based on the assumption a "fundamental cause-and-effect relationship between scheduled
maintenance and operating reliability. This assumption was based on the intuitive belief that
because mechanical parts wear out, the reliability of any equipment is directly related to
operating age. It therefore followed that the more frequently equipment was overhauled, the
better protected it was against the likelihood of failure. The only problem was in determining
what age limit was necessary to assure reliable operation."
3. Condition-based Predictive maintenance: Condition-based maintenance was introduced to
try to maintain the correct equipment at the right time. CBM is based on using real-time data to
prioritize and optimize maintenance resources. Observing the state of the system is known as
condition monitoring. Such a system will determine the equipment's health, and act only when
maintenance is actually necessary. Developments in recent years have allowed extensive
instrumentation of equipment, and together with better tools for analyzing condition data, the
maintenance personnel of today are more than ever able to decide when the right time is to

52
perform maintenance on some piece of equipment. Ideally condition-based maintenance will
allow the maintenance personnel to do only the right things, minimizing spare parts cost, system
downtime and time spent on qui maintenance.

4. Proactive maintenance: The latest innovation in the field of predictive maintenance is so-
called pro-active maintenance, which uses a variety of technologies to extend the operating lives
of machines and to virtually eliminate reactive maintenance. The major part of a pro-active
program is root cause failure analysis, which is the determination of mechanisms and causes of
machine faults. The fundamental causes of machine failures can thus be corrected, and the failure
mechanisms can gradually have engineered out of each machinery installation.

6.2.2- The Company status:

There are 3 maintenance labors present in the company all the working days, they do a little task
like lubrication, changing oil for generators, fixing electric problems in the company, the labor
salary per month equal 500$.
If failure occurs, the company hire to visitors to solve the problem, it takes 2 days in average to
arrive, approximately 4 to 6 days for spare parts to be delivered and repair problem, visitors cost
per day equal of 400$.

53
In addition, the production line was stopped for few days so they have a loss in profit until
solving the problem.

6.2.3- The objective:

Develop the preventive maintenance system applied on the company.
Balance between preventive and predictive maintenance.
Perform the feasibility study for the application of preventive maintenance.
Applying the predictive maintenance and fault diagnoses.
Applying the reliability centered maintenance strategy as a maintenance policy in the
company.

Setting up a preventive/predictive maintenance program:

The process should be predicated on a criticality analysis that defines the relative importance of
each asset. Obviously, the more critical assets receive more attention and effort than less critical
ones. The first step in the process is to determine the maintenance requirements for those assets
to be included in the preventive maintenance program. Based on the criticality analysis, you may
elect to omit some of the less critical assets.
The assessment of need should include three tasks:
1. simplified failure modes and effects analysis. As explained previously, identifies the more
common failure modes for classes of assets, this information should be used to develop specific
preventive maintenance tasks (service, inspection testing, etc.) that will detect these failure
modes before they result in an emergency or breakdown.
2. Duty task analysis. Duty task analysis is used to determine the specific maintenance interval,
skills, and materials needed to properly maintain assets. The process uses a combination of
engineering design analysis from the vendors operating and maintenance manual or similar
sources.
3. Asset history review. For existing assets, this step should include a thorough evaluation of the
maintenance and reliability history of each. As a minimum, this part of the assessment should
include an evaluation of equipment history.
Other available records, such as do reports and safety investigation documents, should be
reviewed as well.
54
Plant machinery classification:
The above-mentioned maintenance philosophies have their own advantages and disadvantages
and implemented after carrying out a criticality analysis on the plant equipment. Usually the
criticality analysis categorizes the equipment as:
Critical
Essential
General purpose
The critical equipment is broadly selected on the following basis:
If their failure can affect plant safety.
Machines that are essential for plant operation and where a shutdown will curtail the
production process.
Critical machines include unspared machinery trains and large horsepower trains.
These machines have high capital cost; they are very expensive to repair or take a long
time to repair.
The essential equipment is broadly selected on the following basis:
Failure can affect plant safety.
Machines that are essential for plant operation and where a shutdown will curtail a unit
operation or a part of the process.
They may or may not have an installed spare available.
Start-up is possible but may affect production process.
Some machines that demand time-based maintenance.
The general purpose equipment is broadly selected on the following basis:
Failure does not affect plant safety.
Not critical to plant production.
Machine has an installed spare or can operate on demand.
These machines require low to moderate expenditure, expertise and time to repair.
Secondary damage does not occur or is minimal.
Preventive maintenance applied in the company:
The primary goal of preventive maintenance is to prevent the failure of equipment actually
occurs. It is designed to preserve and enhance equipment reliability by replacing worn

55
components before they actually fail. Preventive maintenance activities include equipment
checks. partial or complete overhauls at specified periods, oil changes, lubrication and so on. In
addition, workers can record equipment deterioration so they know to replace or repair worn
parts before they cause system failure. Recent technological advances in tools for inspection and
diagnosis have enabled even more accurate and effective equipment maintenance. The ideal
preventive maintenance program would prevent all equipment failure before it occurs.

6.2.4- Creating a preventive maintenance schedule:

After assisting the company and collecting data, we create a preventive maintenance schedule for
every machine and we distribute tasks according to the manual operation of machines.

6.2.5- Feasibility study

Application of condition based maintenance at TOP PACK ONE plant:

It is well recognized that condition based maintenance CBM is the most economically feasible
type of maintenance suitable for any large enterprise. A saving index has been developed to
decide upon the size of enterprise which can afford this application. It is necessary to make a
plant survey in order to make the correct decision as for condition based maintenance.

56
Saving index for the application of condition based maintenance:
The total maintenance consists of two items:
1. Maintenance (servicing), and repair cost.
2. Production loss cost (down time cost).
Servicing is a periodic routine activity that is vital to any machine, it includes:
i. Lubricating (or check the lubricant level)
ii. Adjusting the tightness of clamping bolts
iii. Cleaning... etc.
These activities do not necessitate stopping the production line, but elaborate tending to the
machine and caring for it, they are a must for any maintenance technology.
Repair costRC includes spare parts cost plus the cost of repair time (crew wages, overheads,
total repair time multiplied by maintenance cost rate).

The production loss cost PLC is the cost of total time multiplied by rate of added value of
production per unit time.
If n equal the expected average machine breakdown per year.
MTTR is the mean time to repair a fault per hours
MC is the hourly maintenance cost rate (crew + overheads).
SPC is the spare parts cost
Then the total annual cost of repair TARC will be:
TARC1= n*MTTR*MC+ SPC
If AVP= added value of production per hour.
Then the total annual production loss cost TAPLC will be:
TAPLC1 = n*MTTR*AVP

If we apply the CBM policy, the mean time to repair is reduced.

Let the expected average saving in repair time is a1% , a2% the number of the failure repairs
is to be done at a convenient time, and a3 the saves a sensible amount of spare parts cost.

TARC2=(1-a1) *n*MTTR*MC+ SPC

TAPLC2 = (1-a2) *n*MTTR*AVP

57
Therefore, the annual total saving ATS, due to applying the correct type of maintenance
Technique is given as follows:
ATS= a2 * n*MTTR*AVP+ a1*n*MTTR*MC + a3*

The value of a1 and a3 depend on the staff experience and the type of maintenance technique is
used.

As a direct result of proper monitoring some damage is predictable before occurrence, and then
the repair is possible before excessive damage.

Machine total stopped hours due to failure (hrs.) nb of breakdown

corrugated cardboard line 32 2
manual cutting machine 120 9
automated cutting machine 87 8
printers 96 8
tying machine 86 7
gluing machine 70 5
striping machine 60 7
TOTAL 551 46

The total nb of maintenance employees= 98 technicians

Nb of stopped days= 551/8 = 69 days

product name potato box shoes box pizza box painting roll
nb of stopped 27 18 12 12
days
profit loss 70200$ 29610$ 17529$ 46920$

n =46 machines/yrs.
MTTR= 1021/46 =12 hrs.
MC= 200$ per day for visitors
TARC1= 46*200$*12hrs. + SPC = 110400$ + SPC
Profit Loss in 91 days = 164259$ then AVP=298$/hrs.
TAPLC1= 46*12*298$= 164496 $/yrs.

Suppose a1=50% and a2=60%

58
TARC2= (1-0.5) *(46*200*12) + SPC = 55200$ + SPC
TAPLC2= (1-0.6) * 46*12*298$= 65798$/yrs.
Total cost in applying maintenance plan = TARC2+TAPLC2+ PMC 6000$
ATS= 126998$

Visitors VS Hire maintenance team:

After creating a Preventive maintenance schedule, we have every month many tasks to do for
every machine.
Cost per day of visitors= 200$/day
Cost for 2 expertise technicians per day = 2*30$/day=60$
We have in average 10 to 15 days PM every months
Visitors cost = 6visits*5days*200$= 6000$/yr. =500$/month
Technicians cost= 1600$/month
Saving cost = 1600-500=1100$
Then subcontracting is better than hiring two technician

59
6.3- Safety plan
6.3.1- Incidents cost in the factory:
Material handling incident

Average cost of one injury = 150$

Average cost of one damage =300$
profit per hour = 325 $

TYPE/ YEAR 2014 2015 2016

Number of accidents /year 10 7 11
Stoppage of production/ accident (hrs.) 0.25 0.25 0.25
injuries 2 3 3
damages 5 4 6

Productivity loss in 3 years = (number of accidents*stoppage of

production/accident)*profit per hour = 2275 $

Cost due to injuries in 3 years = number of injuries *average cost of one injury =
1200$

Cost of repairing damages in 3 years = number of damages *average cost of one

damage =4500 $

Total cost per 3 years = Productivity loss + Cost due to injuries + Cost of repairing
damages = 7975$

Total cost per one year = Total cost per 3 years / 3= 2658 $

60
Fire incidents

Average cost of one injury = 200 $

Average cost of one damage = 2000 $
profit per hour = 325 $

TYPE/ YEAR 2014 2015 2016

Number of accidents /year 1 0 1
Stoppage of production/ accident (hrs.) 40 0 4
injuries 2 0 1
damages 10 0 2

Productivity loss in 3 years = (number of accidents*stoppage of

production/accident)*profit per hour = 14300 $

Cost due to injuries in 3 years = number of injuries *average cost of one

injury = 600$

Cost of repairing damages in 3 years = number of damages *average cost

of one damage =24000 $

Total cost per 3 years = Productivity loss in 3 years + Cost due to injuries in
3 years + Cost of repairing damages in 3 years = 38900 $

Total cost per one year = Total cost per 3 years / 3 = 12967 $

Lack of PPEs

Average cost of one injury = 100$s

profit per hour = 325 $

TYPE/ YEAR 2014 2015 2016

Number of accidents /year 10 12 8
Stoppage of production/ accident (hrs.) 0 0 0
injuries 10 12 8
damages 0 0 0

61
 Productivity loss in 3 years = (number of accidents*stoppage of
production/accident) *profit per hour
= (10*0+12*0+8*0) *325

=0$

Cost due to injuries in 3 years = number of injuries *average cost of one

injury
= (10+12+8) *100

= 1200$

Cost of repairing damages in 3 years = number of damages *average cost of

one damage
= (0+0+0) *300

=0 $

Total cost per 3 years = Productivity loss in 3 years + Cost due to injuries in 3
years + Cost of repairing damages in 3 years
=0 + 3000 + 0

= 3000 $

Total cost per one year = Total cost per 3 years / 3

= 1000 $

Human error

Average cost of one injury = 200$

Average cost of one damage =300$
profit per hour = 325 $

TYPE/ YEAR 2014 2015 2016

Number of accidents /year 10 12 8
Stoppage of production/ accident (hrs.) 0.15 0.15 0.15
injuries 3 4 2
damages s 8 9 6

62
 Productivity loss in 3 years = (number of accidents*stoppage of
production/accident)*profit per hour
= (10*0.15+12*0.15+8*0.15)*325

= 1121.25 $

Cost due to injuries in 3 years = number of injuries *average cost of one

injury
= (3+4+2)*200

= 1800 $

Cost of repairing damages in 3 years = number of damages *average cost of

one damage
= (8+9+6)*300

=6900$

Total cost per 3 years = Productivity loss in 3 years + Cost due to injuries in 3
years + Cost of repairing damages in 3 years
=1121.25+1800+6900

= 9821.25 $

Total cost per one year = Total cost per 3 years / 3

= 3273.75 $

Total cost due to lack of safety

Total cost in 3 years = Total cost per 3 years(transportation)+ Total cost per 3
years (fire accidents) + Total cost per 3 years( human error)+ Total cost per 3
years(lack of PPEs)
=7975+38900+9821.25+3000

= 59697 $

Average cost per year = Total cost in 3 years / 3

= 19899 $/year

Cost over 10 years = Average cost per year*10

= 198990 $/10 years

63
6.3.2- Measures taken
Introducing firefighting system.
Introducing machine barriers.
Introducing backup alarms for vehicles.
Equipping workers with suitable PPEs.
Training workers on measures taken.

64
6.3.2.1- Introducing firefighting system
Alternatives:
1. Sprinklers with pumping system
2. Manual fire extinguisher
3. Automatic fire extinguisher

First alternative: Sprinklers with pumping system

Material needed:
Fire Sprinklers, Pumping system (Pump Jockey pump) and Connection pipes

Feasibility study
Cost of fire sprinklers
Fire sprinkler covers 25 m
Area of the factory =6000 m
Number of sprinklers is needed to cover the whole factory = Area
of the factory / sprinkler maximum coverage

= 6000 m / 25 m

=240 sprinklers
Cost of one sprinkler = 12$
Total cost = Number of sprinklers is needed to cover the whole
factory * Cost of one sprinkler =2880 $

Cost of pumping system:

cost of pump :36000 $
cost of jockey pump:30000 $
total cost of pumping system = cost of pump+ cost of jockey pump
=66000 $

cost of connection pipes

cost of 1 meter of pipe =5 $
length of factory = 100 m

65
 width of factory= 60 m
space between each sprinkler = 5 m
number of pipes needed by length of the factory = length of
factory/ space between each sprinkler = 20 pipes
number of pipes needed by the width of the factory= width of
factory/ space between each sprinkler =12 pipes
length of pipes by the length of the factory = number of pipes
needed by length of the factory* width of factory =1200 m
length of pipes by the width of the factory = number of pipes
needed by the width of the factory* length of the factory = 1200 m
total length of pipes needed= length of pipes by the length of the
factory + length of pipes by the width of the factory = 2400 m
total cost of pipes = total length of pipes needed * cost of 1 meter
of pipes = 12000$

cost of maintenance :500$ / year

= 5000 $ / 10 years

total cost of the system = Cost of fire sprinklers +cost of pumping system +cost of connecting
pipes + cost of maintenance =85880 $ s

Second alternative: introducing manual fire extinguishers

Selecting suitable fire extinguisher:

66
 Dry powder fire extinguisher is chosen since it is:
Suitable for paper and plastics , Flammable liquid , Flammable gases , Electric
equipment

Feasibility study

cost of one manual fire extinguisher = 45 $

area of the factory = 6000 m
extinguisher should be available within 250 m
number of extinguishers needed = area of the factory / 250 m = 24 manual
extinguishers
for more security of the machines
3 extinguishers must be placed on the automated production line
12 extinguisher distributed on other machines (one on each
machine)
Total number needed =39 extinguishers
Total cost of manual fire extinguishers = cost of one extinguisher * total number
needed = 1755 $

67
Third alternative: introducing automatic fire extinguishers
Area covered by automatic fire extinguisher = 16 m
Cost of automatic powder fire extinguisher:50 $
Area of the factory: 6000 m
Extinguishers needed = Area of the factory / Area covered by automatic fire
extinguisher =375 extinguishers
Total cost = Extinguishers needed* Cost of automatic powder fire extinguishers
=18750 $

68
Best alternative

COST ADVANTAGES DISADVANTAGES

sprinklers 85880 Fast High cost

$ long lasting Cause damages to machines due to usage of
Total coverage water.
automatic
manual 1755 $ Low cost Slow detection and extinguishing.
Concentrate Might be harmful for users.
only on areas Not automatic
with fires.
automatic 18750 Concentrate Limited capacity
$ only on areas Small coverage area per extinguisher
with fires High cost.
Automatic
Fast detection

Analysis
Sprinklers system have total coverage to the factory and is the fastest to detect
fires, beside that it is long lasting and have large capacity of water which is
enough to extinguish a large fire. However, the rough usage of water in the
presence of many and huge electrical equipments may destroy machines,
materials and finished goods. Besides the high cost of the whole system which is
above the power of the factory in the current time.

Manual fire extinguishers uses dry powder to extinguish fires which is suitable for
electric equipments, cartons and plastics besides that it focuses only on the place
with fire which decreases side damages. Even though the system cost is very low,
but manual fire extinguishers have limited capacity and they are not enough to

69
 extinguish big fires and it depend on human to detect the fire which slow down
the procedure.

Automatic fire extinguisher have fast detection of fires and its dry powder content
is suitable for the factory (electric equipment, carton, plastics)and it focuses
only on places or machines which catches fires. However, it have high cost and
limited capacity, which is not capable to last more than 30 seconds.

Result
Due to the presence of both advantages and disadvantages in the three alternatives, the
best solution is to use two alternatives together:

Manual fire extinguishers

Automatic fire extinguishers above the machines only
Manual fire alarm

70
Cost of best alternative:

Cost of manual fire extinguisher system = 1755 $

Cost of automatic fire extinguishers system above machines only.
Length of automated production line = 75 m
Width of automated production line = 10 m
Area = Length of automated production line* Width of automated production
line
=75*10
=750 m
Area of each other machine = 16 m
Number of machines = 12
Then total area needed to be covered =750+(12*16) =942 m
Number of automatic fire extinguishers needed = Then total area needed to be
covered / area covered by one extinguisher
=942 / 16
=59 extinguishers
Cost = Number of automatic fire extinguishers needed * cost of one
extinguisher
=59 * 50
=2950 $
Cost of manual alarm = cost of alarm + cost of switches + cost of installation = 1000$
Total cost of the firefighting system = Cost of manual fire extinguisher system + Cost
of automatic fire extinguishers system above machines only + Cost of manual alarm

= 1755 $ + 2950 $ + 1000 $

=5705 $

71
6.3.2.2- Introducing machine barriers
Machine barriers must been introduced to protect both workers and machines from
moving vehicles inside the factory.

Cost

Cost of one meter of barrier = 15 $

Parameter needed = 8m + total parameter of machine

MACHINE AUTOMATED CUTTING PRINTING GLUE-STRIP-

PRODUCTION STICK
LINE
number 1 5 2 1
parameter 170 16 12 28
Total parameter 170 80 24 28
Length of barrier 178 88 32 36

Total parameter = 178 + 88 + 32 +36

=334

Total cost = total parameter of barrier * cost of one meter of barrier

=334 * 15= 5010 $

72
6.3.2.3- Equipping vehicles with backup alarm
Due to the absence of back up alarm in vehicles used inside the factory many accident
happened and causes many injuries. Soequipping vehicles with backup alarm is important to
avoid these accidents.

Cost of one alarm = cost of alarm + cost of installation

= 100$

Number of vehicles = 2 vehicles

Total cost = Cost of one alarm * Number of vehicles

=100*2

=200 $

6.3.2.3- Introducing PPEs

PPEs needed:
Safety boots
Safety gloves
Safety helmet

Cost

Number of workers = 50 workers

Cost of one safety boot = 40$
Cost of one helmet = 15 $
Cost of one gloves =2$
Total cost for one worker = Cost of one safety boot + Cost of one helmet
+ Cost of one gloves
= 40 +15+2
= 57 $
Total cost of PPEs = Total cost for one worker * Number of workers
= 57 * 50
=2850 $

73
6.3.2.4- Training
Training is essential to achieve safety measures taken, such that I form the base of using
installed equipments besides the safety procedure to prevent or lower the risk for any accident to
happen.

Training will include:

Complete firefighting training and fire drill.

Material handling training.
Clearing a jam and reporting training
Usage of PPEs training

Cost of training courses:

4 hours needed to train workers about firefighting system and safety

measures. ( 35$ per hour)
5 hours needed to train workers about clearing a jam or a blockage. ( 20$
per hour)
3 hours needed to train workers about transportation rules inside the
factory. ( 35$ per hour)
2 hour to train workers about proper use of PPEs ( 30$ per hour)
Total training cost = Total training hours * Cost per hour

= 140+100+105+60

= 405 $

74
6.3.3- Return of investment in safety
Total cost due to lack of safety = cost due to fire incidents + cost due to transportation
accidents + cost due to lack of PPEs +cost due to human error

= 129670 +26580 +10000 + 32740

= 198990 $ / 10 years.

Cost of safety measures = cost of firefighting system + cost of barriers + cost of PPEs +
cost of training + cost of backup alarm

=5705 +5010 + 2850 +240 + 350

+ =14155$ / 10 years.

risk could be reduced by 75 %

reduction in cost = Total cost due to lack of safety * risk reduction

=198990 * 0.75

=149242 $

forecasted cost = Total cost due to lack of safety - reduction in cost

= 198990 - 149242.5

=49748 $ /10 years.

After safety cost = cost of safety measures + forecasted cost

= 49748 + 14155

= 63903 $ /10 years.

Saving = cost due to lack of safety after safety cost

=198990-63903

=135087 $/10 years

= 13508 $ / year

75
6.4- Organizational design
6.4.1- Purpose
Organizational structure provides guidance to all employees by laying out the official reporting
relationships that govern the workflow of the company. A formal outline of a company's
structure makes it easier to add new positions in the company, as well, providing a flexible and
ready means for growth.

6.4.2- Significance

Without a formal organizational structure, employees may find it difficult to know who they
officially report to in different situations, and it may become unclear exactly who has the final
responsibility for what. Organizational structure improves operational efficiency by providing
clarity to employees atall levels of a company. By paying mind to the organizational structure,
departments can work more like well-oiled machines, focusing time and energy on productive
tasks. A thoroughly outlined structure can also provide a roadmap for internal promotions,
allowing companies to create solid employee advancement tracks for entry-level workers.

Flat Organizational Structure

There are relatively few layers of management in what is termed a flat organizational structure.
In a flat structure, front-line employees are empowered to make a range of decisions on their
own. Information flows from the top down and from the bottom up in a flat structure, meaning
communication flows from top-level management to front-line employees and from front-line
employees back to top management.

Tall Organizational Structure

There are numerous layers of management in a tall organizational structure, and often inefficient
bureaucracies. In a tall structure, managers make most operational decisions, and authority must
be gained from several layers up before taking action. Information flows are generally one-way
in a tall structure from the top down.

76
Considerations

It is common for small businesses to lack a solid organizational structure. All employees in
startup companies can be required to perform a range of tasks outside of their official job
descriptions, and a good number of employees in startups have generous leeway in making
decisions. Aside from that, all employees in a startup generally know who they report to, since it
is usually a single person or group the owner or partners. It is very important to have a formal
organizational structure in place before your company grows so large that your workforce
becomes unwieldy.
People Prefer a Pecking Order
It turns out employees sometimes prefer hierarchical relationships over equal ones, according to
a study conducted by Stanford Graduate School of Business professor Larissa Tiedens and Emily
Zitek, an assistant professor at Cornell University's Industrial and Labor Relations School.
The study involved several experiments in which participants were asked to do things such as
remember org charts and memorize connections among people. They were also asked to
comment on how well they thought fictitious companies were doing on the basis of these
materials.
Some of the charts reflected little or no hierarchy, and others revealed a more stratified structure.
The participants studied the charts for 30 minutes, then answered questions. Get this: Those who
had studied a more hierarchical company found the task easier and expressed a more favorable
view of the firm.
It turns out, people like hierarchies because of the clarity they provide: They're easier to
memorize and more predictable. The charts that reflected more egalitarian structures confused
the participants. "Some even complained that these relationships did not make sense," the
researchers wrote in their paper, which was recently published in the Journal of Personality and
Social Psychology.
In a hierarchy, it quickly becomes apparent who gets access to whom, which positions are
coveted because they come with better pay and status, and so forth. Take away all the levels, and
things get more interesting, albeit more confusing. As Tiedens puts it, equality "can be messy,
and hierarchy is conceptually cleaner."

77
That's not to say hierarchy is always better than equality in the workplace. In fact, plenty of
companies use an egalitarian structure to foster unique environments in which workers are free to
innovate.
s

6.4.3- Organizational Structure

After studying the whole company beginning with facility layout, maintenance to safety we
concluded the number of labors that we need and the managerial function that we do not have to
manage the whole company in a successful way, then that led us to design the organizational
structure.

Ownership
Name
Shareholders

Corporate
Name
Management
Board of
Director

Name
Divisional
General
Management
Manager

Name
name Name Name Name Name
Functional M. of C.S. &
Human M. of Research M. of Accounting
Management Development
Media
resource Inventory Production M.
Marketing

Position Name Name

Supervisor Supervisor

Name Name Name Name

Assistant Assistant*2 Sales Assistant*2
Assistant in Store warehouse Assistant Accounting

Employee Name Name Name

Labor *22 Labor *22 Labor *5

Figure 16 Designed Organizational Structure

78
6.4.4- Job description:
A job description is a list that a person might use for general tasks, or functions, and
responsibilities of a position. It may often include to whom the position reports, specifications
such as the qualifications or skills needed by the person in the job, and a salary range.

Title: Board of director

Reports to: Owners

Job purpose: carry out the whole factory

Key responsibilities:

Respond and follow up among all departments

Monitor and report to general manager and owners
Evaluating and decision making
Developing policy
Corporate activities
Identify, develop and direct the implementation of business strategy
Coordinate between the two owners.

General Manager

Title: G.M

Reports to: Board of directors

Responsibilities:

Plan, develop and implement strategy for organizational development

Manage and develop direct reporting staff
Manage and control department expenditure within agreed budgets
Liaise with other functional / departmental managers
Ensure activates meet with and integrate with organizational requirements for quality
management

79
Research and development

Title: Research and development

Reports to: General Manager

Responsibilities:

Market and technology research

Formulation of strategy
New product development planning and management
Marketing and advertising and promotion planning
Launch and implementation
Self-development continuing personal development

Account Managers:

Title: Account Manager

Reports to: General Manager

Responsibilities:

Plan and priorities personal sale activities and customer/prospect contact towards and
achieving agreed business aims, including cost and sales
Manage product, pricing and margins according to agreed aims
Maintain and develop existing and new customers

Assistant account:

Title: Assistant account

Reports to: Account Manager

Responsibilities:

Mange cashed payment system

Inspecting products
Entering data in PC

80
 Serving customers

Customer service:

Title: C.S

Reports to: Account Manager

Responsibilities:

Respond to customer
Follow up to customer
Listing to customer complains
Coordinate among customers, production manager and accounting manager.

Manager of Inventory

Title: Manager of Inventory

Reports to: G.M

Responsibilities:

Follow the store assistant and the warehouse assistant.

Knowing what its in the store (raw material)
Update what there is in the warehouse (inventory)

Two assistant in the warehouse:

Reports to: Manager of Inventory

Responsibilities:

Cleaning
Inspecting and knowing what there is in the warehouse( kind of product)
Entering data in PC
Organizing products in the warehouse

81
Production Manager:

Title: P.M

Reports to: G.M

Responsibilities:

Follow up the production

Safety plan
Facilitate the work
Maximize the production
Making work efficient
Motivate staff
Increase productivity
Breakdown maintenance
Preventive maintenance
Scheduling P.M
Build history for every machine
Give tasks for technicians (if there is!)

Supervisors on the production

Title: Supervisor

Reports to: production manager

Responsibilities:

Inspection
Distributing tasks
Resting the machines at overtime work
Observing products if they are correctly produced
Follow up the workers.
Ordering the material raw from the production manager.
Inspecting the quality of the boxes.

82
 Coordinate among labors.

Labors:

Responsibilities:

Everyone works at his field (machine, warehouse)

Turning machines on/off each on his machine
Cleaning their machines after work
Asking their needs from the supervisor

HR (human resources) head or director - typical job description duties

1. Plan, develop and implement strategy for HR management and development (including
recruitment and selection policy/practices, discipline, grievance, counselling, pay and
conditions, contracts, training and development, succession planning, morale and
motivation, culture and attitudinal development, performance appraisals and quality
management issues.
2. Establish and maintain appropriate systems for measuring necessary aspects of HR
development
3. Monitor, measure and report on HR issues, opportunities and development plans and
achievements within agreed formats and timescales
4. Manage and develop direct reporting staff
5. Manage and control departmental expenditure within agreed budgets
6. Liaise with other functional/departmental managers so as to understand all necessary
aspects and needs of HR development, and to ensure they are fully informed of HR
objectives, purposes and achievements
7. Maintain awareness and knowledge of contemporary HR development theory and
methods and provide suitable interpretation to directors, managers and staff within the
organization
8. Ensure activities meet with and integrate with organizational requirements for quality
management, health and safety, legal stipulations, environmental policies and general
duty of care.

83
Chapter 7-
7.1- List of Resources
When you start your project you need to consider what resources are required to get it done. Its
always best to ask for the things you need at the beginning, rather than getting stuck halfway
through because you havent planned it out, and having to ask then for additional resources.

1. People
a. Expertise labors are required to get the project done.
b. New managerial function.
c. Subcontracting Maintenance Company.
2. Machine
a. Conveyor system
3. Information technology System
4. Capital to purchase the conveyer and the ability to afford the salary for the managers

7.2- Time planning and schedule

Time to finish our study:

Time to apply our study

84
Chapter 8 - Conclusion:

To conclude this project, based on the results generated from the simulation, the objectives of
this case study have been achieved. The problem faced by this company has been identified and
improvement alternatives proposed using ARENA modules have been created to build the
simulation model. The alternatives have been chosen based the significant improvement in
performance measures.

As for the results obtained concerning the maintenance of the machines in the company, we are
able to balance between predictive and preventive maintenance and as a result, the number of
breakdowns has been decreased and by that costs are also decreased.

Through the suggestion we proposed concerning the installation of safety requirements, the
environment of the company will be safer and by that we guarantee that the medical bills will be
decreased.

At last, improvements we suggested concerning the job description for every employee will
guarantee that every labor is responsible for the work he does and by designing a new
organizational structure there will not be conflicts for the desired tasks. Besides, every labor will
be recognized by the functional managerial and by that motivation will be applied.

85
Chapter 9 - References:
Organizational Structure
[1] Organizational design book

[2] Organizational design book

[3] PROMORE INSTITUTE, BUSINESS, MANAGEMENT

http://panmore.com/starbucks-coffee-company-organizational-structure
[4] Cited by 13 - Related articles

Nucor corp. and the us steel industry - Brian K. Boyd

[5] Author Affiliations:1Professor of Strategy at the Sad Business School, University of
Oxford

2
Professor of Strategy at Sad Business School, University of Oxford
ISSN: 0008-1
DOI: 10.1525/cmr.2016.58.4.78
Accession Number: 117950230
Summary, p: 19
[6] Affiliation: Riga Technical University, Kalnciema street 6, LV-1048, Riga, Latvia

Note: Selection and peer-review under responsibility of the Contemporary Issues in

Business, Management and Education conference.

Source: In The 2-dn International Scientific conference ?Contemporary Issues in

Business, Management and Education 2013", Procedia - Social and Behavioral
Sciences 24 January 2014 110:871-878

Publisher: Elsevier Ltd

ISSN: 1877-0428
DOI: 10.1016/j.sbspro.2013.12.932
Accession Number: S1877042813055729

86
Maintenance
[7] Hasnida Ab-Samat, Livendran Nair Jeikumar, Ernnie Illyani Basri, Nurul Aida
Harun and Shahrul Kamaruddin School of Mechanical Engineering

Universiti Sains Malaysia

Engineering Campus, 14300 Nibong Tebal, Penang, Malaysia
[8] Proceedings of the World Congress on Engineering 2015 Vol II
WCE 2015, July 1 - 3, 2015, London, U.K.
[1] Chand, G., & Shirvani, B. (2000). Implementation of TPM in cellular
manufacture. Journal of Materials Processing Technology, 103 (1), 149-154.
[2] Rodrigues, M., & Hatakeyama, K. (2006). Analysis of the fall of TPM in
companies. Journal of Materials Processing Technology, 179 (1-3), 276-279.
[3] Cigolini, R., Fedele, L., Garetti, M., & Macchi, M. (2008). Recent advances
in maintenance and facility management. Production Planning & Control, 19 (4), 279-
286.
[9] Source: In 1st Global Colloquium on Recent Advancements and Effectual
Researches in Engineering, Science and Technology - RAEREST 2016 on April 22nd &
23rd April 2016, Procedia Technology 2016 25:1080-1087
Publisher: Elsevier Ltd
ISSN: 2212-0173
DOI: 10.1016/j.protcy.2016.08.211
Accession Number: S2212017316305655
[10] University of Seville, Department of Industrial Management, School of
Engineering, Sevilla, 41092, Spain
Publisher: Elsevier B.V.
ISSN: 0166-3615
DOI: 10.1016/j.compind.2016.07.003
Accession Number: S0166361516301178

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Facility plan and design:
[11] International Journal of Innovative Research in Science,

Engineering and Technology

(An ISO 3297: 2007 Certified Organization)

Vol. 3, Issue 4, April 2014

Assistant Professor, Dept of IEM, R V College of Engineering, Bangalore-560085,

Karnataka, India 1

VIII SEM Student, Dept of IEM, R V College of Engineering, Bangalore-560085,

Karnataka, India 2

VIII SEM Student, Dept of IEM, R V College of Engineering, Bangalore-560085,

Karnataka, India 3

VIII SEM Student, Dept of IEM, R V College of Engineering, Bangalore-560085,

Karnataka, India 4

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[3]. Nehal Elsayar, Elwood S., Armour G. C. and Vollmann, T. E., Allocating Facilities
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[12] 2014 The Authors. Published by Elsevier B.V. Peer-review under responsibility
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Author Affiliations: 1Department of Robotics and Mechatronics, Advanced

Manufacturing Systems Research Division, Korea Institute of Machinery and Materials,
156 Gajeongbukno Yuseong-gu 305-343 Korea

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