Keywords: Innovation, waste reduction, IDEF0. Authors:

Transcription

1 STRATEGY TO improve PRODUCTIon IN SMS COMPANIES IN Ecuador. Authors: Víctor Hugo González, FCSH ESPOL MSc. Management, Worcester Polytechnic Institute Magister en Administración de Empresas, ESPOL (MBA) Magister en Administración de Sistemas de Calidad, ESPOL (MSc) PhD (c) Manufacturing Engineering, WPI Yiming (Kevin) Rong, Ph. D Higgins Professor of Mechanical Engineering Associate Director of Manufacturing and Materials Engineering Director of Computer-aided Manufacturing Laboratory rong@wpi.edu Arthur Gerstenfeld, Professor School of Business, Worcester Polytechnic Institute,Management, Industrial Engineering Director, Wall Street Project Ctr. Ph.D., Massachusetts Institute of Technology ag@wpi.edu Abstract: In this article the author talks about a methodology to transform different kind of companies following simple steps; which are the following: identify waste, Business Process Reengineering using IDEF0 (Process Modeling), develop process documentation, and simulate to proof effectiveness to this company Keywords: Innovation, waste reduction, IDEF0. One of the factors affecting the competitiveness of micro-small enterprises in Ecuador is the deficiency that exists in the area of production, starting from the bad relationship between the administrative area and the production area. This causes gaps exist not only in production but also in process documentation and quality, which has a direct impact on the overall costs of the company. By studying the global production systems, environments of the factory and office areas have a strong relationship of interdependence. So, that there is a flawless production, it is necessary that the plant has the correct documentation in the production line, indicating precise parameters of the process, at the right time and in the right amounts. This means that it must have a waste-free environment, both in the office and in the production area.(boardman and Johnson July 2001) In this relationship, for example, quotes and purchase orders are sent to customers with both the amount of product, and the delivery time of the product based on the efficiency of the factory. Moreover, the entire production of the company depends on the efficiency of document processing for sales orders on time, and to ensure accurate quantities of raw materials when necessary.

2 All global companies want to reduce waiting time for the customer, (Boardman and Johnson July 2001) and this can be achieved when an office "lean" factory works with a "lean" thereby increasing product quality. A company must implement radical changes to compete and grow. (Underdown 1997) The importance of implementing a lean office (Barcia 2003), and (Engineering 2013) Lean manufacturing production as a combined strategy in its businesses to its progress and development is a very important issue for changing, but companies in Ecuador do not know the methods, and procedures for these changes. Methods to promote manufacturing efficiency, eliminating waste and transforming a factory to a Lean factory, and along with the transformation of an office to a lean office, are little known in Ecuador, in this article a methodology that involves these two, administrative and production Enterprise SME's sectors is described. The steps for this methodology are the following: Figure 1. Methodology for Transforming SMEs companies to LEAN companies. The methodology begins with the development of interviews (Glasow 2005) as a fast and effective means to acquire information from the company. Interviews the owner and employees are developed to acquire data on various processes, information, waste. These data are analyzed, and a process reengineering with the identified waste give new parameters for the comprehensive evaluation of the productive process of the SMEs.

3 Figure 2. Survey for Office Area for an SME Figure 3. Survey for the Production Area for an SME After obtaining the information of SMEs, it is documented and begins to make an IDEF0 (Icam DEFinition for Function Modeling, where 'ICAM' is an acronym for Integrated Computer Aided Manufacturing) model of the company. IDEF0 is a methodology that has to do with modeling decisions, actions and activities of an enterprise system. This language is very helpful to place a hierarchy of processes, their inputs, controls, outputs and mechanisms, as well as documentation. The detail of this

4 approach can be very simple or complex depending on your business application.(information and , David A. Marca 2006) Used At: Author: Project: VICTOR HUGO GONZALEZ Process Model MV Date: 18/08/2013 Rev: 18/08/2013 WORKING DRAFT RECOMMENDED READER OWNER MANAGER DATE 15/08/ /08/2013 CONTEXT: Purpose: Viewpoint: Notes: Identify processes in a textile company, so a guidebook would be developed author: VICTOR GONZALEZ PUBLICATION C7 Base de producción C6 Técnicas de empaque y doblado C5 Técnicas de confección C4 Storage size available C9 Raw Material Inventory C2 Strategic Planning C3 Budget C1 Copia de factura O1 Factura I1 Customer Needs I2 Raw Material Make Garment O2 Prendas a reciclar O4 Finished Garment M1 Account in DROPBOX M2 Computer 1 M3 Computer 2 0 A0 M11 Machines M10 Inventory Software M4 Employees M9 Owner M5 Workshop chief M8 Quality Control Format M6 Customer Database M7 Production Format Node: Title: Number: MAKING GARMENT A-0 Figure 4. Representation of a Textile manufacturing company using IDEF0 1 Page: Used At: C2 Strategic Planning Author: Project: C9 Raw Material Inventory VICTOR HUGO GONZALEZ Process Model MV Notes: C3 Budget Techniques of making Garment C4 Storage size available Date: 18/08/2013 Rev: 18/08/2013 C7 Production order C5 Techniques of making Garment WORKING DRAFT RECOMMENDED PUBLICATION READER COMPANY OWNER MANAGER C6 Packaging and folding techniques DATE 15/08/ /08/2013 CONTEXT: A-0 I1 Customer Needs I2 Raw Material Receive order M2 Computer 1 M1 Account in DROPBOX 1 A1 M7 Production Format M9 Owner Order receipt Supply Raw Materials M6 Customer Database 2 A2 Raw material to produce Make Garment Garments to remake M5 Workshop chief Garments to Quality Control 3 A3 M8 Quality Control Format Inspect Quality M3 Computer 2 Approved Garment 4 A4 Prepare Garment 5 Garment Ready A5 O1 Invoice C1 Copy of Invoice O2 Garment to recycle Deliver Garment 6 O4 Finished Garment M10 Inventory Software M4 Employees M11 Machines Node: Title: Number: Make Garment A0 3 Page: Figure 5. Representation of the main processes of a textile manufacturing clothing apparel using IDEF0.

5 Processes with new input and output parameters are documented, developing an IDEF0 model (Integration Definition for Function Modeling) (Feldmann 1998, Al- Ahmari and Ridgway 1999, David A. Marca 2006), in which it participates actively with the members of the company to its successful completion.(rawabdeh 2005) Once the construction phase of IDEF0 business model is completed, it is necessary to prove to the employer that what has been done will help the company to improve its production output, lower its cycle time, and work in process, and enhance its quality. For this reason, a simulation model of SME is designed validating the results with real data, and show the business owner the effectiveness of the changes. For production, Witness, a software that simulates and validates in a real way ( ), manufacturing processes with high variability and complex interaction among variables. With this simulation, production data are validated, and the verification of changes in machinery, human resources and / or other inputs is performed to improve production.(kleber Barcia 2002, Group 2013) Figure 6. Witness model of a typical textile company, showing office and production areas and their connections.

6 For administrative area, in order to get a better understanding of the profit of the business, a Software Risk ( ) serves to show definitively what the economic benefits would be when implementing the proposed process reengineering, and waste reduction. With this software, it can give the owner an idea of the profit obtained (statistical confidence level) at the end of its implementation and as future projection. The following graphs show the results of a company which make garments for the basic parameters of production, cycle time, and sales. Figura 7. Results in increased number of products. Figura 8. Simulation Results of the Cycle time.

7 Figura 9. Simulation results of total sales when implementing the methodology. Proven this methodology, a guidebook is developed for future applications. This guidebook details the steps to follow to enhance company s productivity. It includes the steps given above in detail. (González-Jaramillo 2014) This book will be used for future research in the Center of Economic Research, CIEC, ESPOL, for different SMS enterprises to get more data to validate the methodology. ( ) The following figure shows the steps to implement enterprise-level methodology.

8 Interview with Questionnaire Meet the Owner Select Office- MF Employees Interview Office-MF Employees Identify Problems Analyze Data Review Data Clasify Data Perform Analysis Meeting with Owner-Office Manager Identify/Define Processes Discuss Processes Generate Code, Name of Process and Objective Generate Inputs, Ouputs, Indicators, Records needed and Documents Generate the Kit of Processes Validate the kit with the Owner/ Production Manager Take Notes End Meeting Meeting with Owner- Production Manager Define Personnel Roles Define Author: VHG Define Expert: Dr. A. G. Define Reader: Owner and Production Manager Define Commenter: Dr. Kevin Rong, Dr. Arthur Gerstenfeld Review Committe: Owner and Production Manager Select Proper Modeling Parameters Define Purpose Define Viewpoint Define Type of Breakdown Make IDEF0 Diagrams Authoring an IDEF0 Modeling Define diagrams and texts From Process activity Documentation Layout the main path and secondary path Validate the diagram with Company Make the Author Reader Cycle Stop Modeling Processes Modeling peer review with the company Reader/Author Review Cycle Conduct Walkthrough Sessions Make the Author Reader Cycle Stop Modeling Processes Apply Lean techniques Process Observation / Spaghetti Workflow Process Charts / Value Added and Non Value Added Analysis Waste Analysis Solutions Ranked Implementation Plan Analyze possible solutions Apply Simulation Modelling List of Waste and Solutions Develop a Manufacturing/ Office(*) model Validate Simulation Model Figure 10. Steps given in the guidebook for future applications in SMS companies.

9 In this paper is shown that the identification of waste, Process Development and Documentation, functions and processes modeling and simulation gives satisfactory results. The future application depends on the degree of business confidence in the work performed. It is proposed to carry out short-term agreements with small businesses for micro-pilot testing (using CIEC) to extend the use of this methodology in the specific industry, improving quality, and obtaining better benefits for entrepreneurs. References. Al-Ahmari, A. M. A. and K. Ridgway (1999). "An integrated modelling method to support manufacturing systems analysis and design." Computers in Industry 38(3): Barcia, k. (2003). A METHODOLOGY FOR IDENTIFYING AND ELIMINATING WASTE IN OFFICE ENVIRONMENTS. Industrial Engineering. Austin Texas, University of Texas at Austin. PhD in Industrial Engineering. Boardman, B. S. and M. E. Johnson (July 2001). "Lean Techniques in an Office Setting." Proceedings of the th Annual E&R Foundation Summer Workshop. David A. Marca, C. L. M. (2006). IDEF0 and SADT: A Modeler s Guide, Open Process, Inc. Engineering, T. W. S. U. D. o. I. a. M. (2013). "Lean System Implementation - IDEF models." Retrieved July 2013, 2013, from Feldmann, C. G. (1998). The Practical Guide to Business Process Reengineering Using IDEF0, DORSET HOUSE PUBLISHING CO., INC. Glasow, P. A. (2005). Fundamentals of Survey Research Methodology. MITRE. Washington C3 Center, McLean, Virginia, MITRE. González-Jaramillo, V. H. (2014). A SIMPLIFIED METHODOLOGY TO TRANSFORM SMALL AND MEDIUM COMPANIES TO LEAN MANUFACTURING ENTERPRISES IN ECUADOR, Worcester Polytecnic Institute, WPI. (Unpublished) Group, L. (2013). "Predictive Simulation." Simulation. 2013, from

10 Information, D. F. and P. S. P. 183 (1993). Announcing the Standard for INTEGRATION DEFINITION FOR FUNCTION MODELING (IDEF0). December 21, 1993, Federal Information Processing Standards Publications (FIPS PUBS). Kleber Barcia, B. L. H. (2002). Using Simulation to Determine System Effectiveness: A Case Study of a Product-Repair Area in a Company. Business Information Technology World Conference. Guayaquil, Ecuador, ESPOL. Rawabdeh, I. A. (2005). "A model for the assessment of waste in job shop environments." International Journal of Operations & Production Management 25(8): Underdown, D. R. (1997). An Entreprise Transformation Methodology. Industrial Engineering. Arlington, TX, University of Texas at Arlington: 315.