LOGO Capstone Design Economic analysis through line balancing

LOGO Contents Introduction to Team members & Topic 1 Reason of topic selection 2 Market conditions 3 Progress direction of project 4 Schedules 5

LOGO Introduction to Team members & Topic 1 Lee ho jung (Master) Visit to field, Collection of data, Report drawing up Choi ji ung (Member) Visit to field, Collection of data, Report drawing up Chun jin won(Member) Data arrangement, Report drawing up Economic analysis through line balance

LOGO Capstone Design Engineering Economics Quality Control Production Management Senior Junior Reason of topic selection 2 Productivity, Line-Balance, Plant Management Reliability, Defective ratio Investment analysis Utilize all of IE’s tools

LOGO Market conditions 3 Increase over last year 27.1 % Increase over last year 27 % 자료출처 : 통계청 광업ㆍ제조업 통계조사 보고서

LOGO Market conditions 3 Distinction Number of companies Production Amount(1million won) shipment Amount(1million won) Yearly average Yearly average Growth rate Yearly average Yearly average Growth rate Yearly average Yearly average Growth rate %1,822, %1,825, % 자료출처 : ( 주 ) 밸류애드

LOGO Error process Process Form Grasp Line-Balance Productivity Defective Ratio Analysis Analysis of economy The direction of project 4

LOGO Week Report the plan Visit to field Process form grasp Error process analysis Productivity analysis Line-Balance analysis Simulation modeling Economical evaluation Resultant report Schedules 5

LOGO

Capstone Design Economic analysis through line balancing

LOGO Contents Introduce to Company 1 Production Flow 2 Analysis by Process 3 4 Schedules

LOGO Company Introduction 1 Company Name : Dongyang Inotek Owner : Yang jong-hyeon History : Established in 2007 Manufactured Items : Washing machine Shaft Last year Sales : 6 billion Location : ok-dong, gwangsangu

LOGO Production Flow Factory inside photo 2

LOGO Production Flow MaterialsCentering Process Lathe turning Process Heat treatment Process Press-in Process Form rolling Process Polishing Process TAP Process Product 2

LOGO Analysis by Process 3 Process Name : Centering Process Drill holes on both sides of materials center

LOGO Analysis by Process 3 Process Name : Lathe turning Process Using a CNC lathe machining

LOGO Analysis by Process 3 Process Name : Heat treatment Process Heat treatment

LOGO Analysis by Process 3 Process Name : Press-in process Put the bearings

LOGO Analysis by Process 3 Process Name : Form rolling Process Screw Machining

LOGO Analysis by Process 3 Process Name : Polishing Process Trim surface

LOGO Analysis by Process 3 Process Name : TAP Process Screw Machining

LOGO Week Report the plan Visit to field Process form grasp Error process analysis Productivity / Defective ratio analysis Line-Balance analysis Simulation modeling Economical evaluation Resultant report Schedules 4 4 PlanRun

LOGO

Capstone Design Economic analysis through line balancing

LOGO Contents Working time & Production volume 1 Error process analysis 2 Defective ratio & Productivity analysis 3 4 Schedules

LOGO Working time & Production volume 1 Weekday = 36,600 sec / day(10hour 10min) Saturday = 27,600 sec / day(7hour 40min) A month Working hours = 22(day) X 36,600(sec) + 4(day) X 27,600(sec) = 805,200(sec) + 110,400(sec) = 915,600(sec)=254hour 20min Average monthly production = 8,100 EA Average daily production = 312 EA Heat treatment process Press – in process Form rolling process Polishing process TAP process Lathe turning process Centering process (1 machine) (2 machine) (1 machine)

LOGO Error process analysis One Process – One machine Time(sec) Process name 2

LOGO Error process analysis Actual Process : Used 2 lathe turning machine Time(sec) Process name 2

LOGO Defective ratio & Productivity analysis 3

LOGO Week Report the plan Visit to field Process form grasp Error process analysis Productivity / Defective ratio analysis Line-Balance analysis Simulation modeling Economical evaluation Resultant report Schedules 4 4 PlanRun

LOGO

Capstone Design Economic analysis through line balancing

LOGO Contents Calculation of objectives cycle-time 1 Calculate the minimum workplace 2 Relationship between number of equipment and line efficiency 3 4 Schedules

LOGO Calculation of objectives cycle-time Process flow photo 1

LOGO Calculation of objectives cycle-time 1 (Day at work) 3,125 EA per month 5,625 EA per month (Day and night work) (Day at work) 3,125 EA per month 3,125 EA per month 14,580 EA per month 8,100 EA per month 8,100 EA per month 8,100 EA per month

LOGO Calculation of objectives cycle-time 1 1month production : 8,100 EA Sum of production day work : 8,100 EA X 9 month = 72,900 EA Sum of production night work : (8,100 EA X 1.8) X 3 month= 43,740 EA 1year total production : 72,900 EA + 43,740 EA = 116,640 EA Currently cycle-time : 293 sec per 1EA Objective tact-time : 915,600 sec / 9,720 EA = sec per 1EA 1month production objectives : 116,640EA / 12month = 9,720 EA Day and night 1month production work : 8,100 EA X 1.8= 14,580 EA

LOGO Calculate the minimum workplace 2..

LOGO Calculate the minimum workplace 2 Process name Time(Sec) 1 machine 4 machine 1 machine ※ Note : Currently Efficiency = %..

LOGO Relationship between number of equipment and line efficiency Cycle-time Number of equipment Efficiency % % % sec sec 243 sec 293 sec 208 sec % Centering : 25 sec (1 machine) Lathe turning : 40 sec (5 machine) Heat treatment : 40 sec (1 machine) Press-in : 25 sec (1 machine) Form rolling : 35 sec (1 machine) Polishing : 18 sec (1 machine) TAP : 25 sec (2 machine) Total : 208sec (12 machine) Centering : 25 sec (1 machine) Lathe turning : 28.6 sec (7 machine) Heat treatment : 20 sec (2 machine) Press-in : 25 sec (1 machine) Form rolling : 17.5 sec (2 machine) Polishing : 18 sec (1 machine) TAP : 25 sec (2 machine) Total : 159.1sec (16 machine)

LOGO Week Report the plan Visit to field Process form grasp Error process analysis Productivity / Defective ratio analysis Line-Balance analysis Simulation modeling Economical evaluation Resultant report Schedules 4 4 PlanRun

LOGO

Capstone Design Economic analysis through line balancing

LOGO Contents Correction contents 1 2 Simulation modeling 3 4 Result & Analyze Raw data for simulation Schedules 5

LOGO Correction contents 1 Average monthly production = 8,100 EA Working time per month = 915,600 / sec Total production of 1 year = 116,640 EA Objective monthly production = 116,640 / 12 = 9,720 EA

LOGO Correction contents 1 (Day at work) 3,125 EA per month 5,625 EA per month (Day and night work) (Day at work) 3,125 EA per month 3,125 EA per month 8,100 EA per month 8,100 EA per month 8,100 EA per month 14,580 EA per month 14,580 EA per month 8,100 EA per month 8,100 EA per month 8,100 EA per month 8,100 EA per month 8,100 EA per month 8,100 EA per month 14,580 EA per month Used 2 lathe turning machines

LOGO Correction contents 1 (Day at work) 3,125 EA per month 5,625 EA per month (Day at work) 3,125 EA per month 3,125 EA per month 8,100 EA per month 8,100 EA per month 8,100 EA per month 14,580 EA per month 14,580 EA per month 8,100 EA per month 8,100 EA per month 8,100 EA per month 9,720 EA per month 9,720 EA per month 9,720 EA per month 9,720 EA per month Used 3 lathe turning machines

LOGO Raw data for simulation Number of equipment to satisfy seconds Time(sec) Process name / sec Used 3 Lathe turning machines cycle time = sec 3,125 EA per month 8,100 EA per month

LOGO Raw data for simulation 3,125 EA per month 8,100 EA per month 9,720 EA per month Each process cycle time & process form Working hours a day 3,125 EA per month 8,100 EA per month Week : 36,600 sec Weekend : 27,600 sec Objective Tact-time = sec Centering : 25sec Lathe turning : 200sec Heat treatment : 40sec Press-in : 25sec Form rolling : 35sec Polishing : 18sec Tap : 50sec 2

LOGO Simulation modeling Used 2 lathe turning machines Time constraints Constraints for only one hour’s operation Input the raw material throughout the lathe turning process Finished product from heat treatment 3

LOGO Simulation modeling Used 3 lathe turning machines 3

LOGO Result & Analyze 3,125 EA per month 5,625 EA per month 3,125 EA per month 3,125 EA per month 8,100 EA per month 8,100 EA per month 8,100 EA per month 9,720 EA per month Used 2 lathe turning machine 4

LOGO Result & Analyze 3,125 EA per month 5,625 EA per month 3,125 EA per month 3,125 EA per month 8,100 EA per month 8,100 EA per month 8,100 EA per month 9,720 EA per month Used 3 lathe turning machine 4

LOGO Week Report the plan Visit to field Process form grasp Error process analysis Productivity / Defective ratio analysis Line-Balance analysis Simulation modeling Economical evaluation Resultant report Schedules 4 PlanRun 5

LOGO Simulation model 3,125 EA per month 8,100 EA per month Show the simulation model

LOGO

Capstone Design Economic analysis through line balancing

LOGO Contents Raw data for economical analyze 1 2 Economical analyze 3 4 Result Method of economical analyze Schedules 5

LOGO Row data for economical analyze 1 Machine investment cost New Lathe Turning machine 66,000,000 won Payment (Unit : won) Minimum wage : 4,320 Weekend / Over time : 4,320 x 1.5 = 6,480 Night at work : 4,320 x 2 = 8,640

LOGO Row data for economical analyze 1 Wage calculation Weekday(1worker) : 34,560(8h) + 16,200(2h 30m) = 50,760 50,760 x 22(day/month) = 1,116,720 Weekend(1worker) : 6,480 x 8 = 51,840 51,840 x 4(day/month) = 207,360 1year = 10,592,640 x 12(month) = 127,111,680 1month = 1,324,080 x 8(worker) = 10,592,640 1worker wage / month = 1,116, ,360 = 1,324,080 Increase machine / year = 1,324,080 x 9(worker) = 143,000,640

LOGO Row data for economical analyze 1 Night at work wage calculation PM 20:00 ~ PM 22:00 : (4,320 x 1.5) x 2 = 12,960 PM 22:00 ~ AM 06:00 :(4,320 x 2) x 8 = 69,120 Sum = 82,080 / day (82,080 x 8(worker)) x 22(weekday) = 14,446,080(month) x 3(month) = 43,338,240 1year(day at work + night at work) = 127,111, ,338,240 = 170,449,920 Minimum wage increase rate Year Increase rate8.3 %6.1 %2.8 %5.1 %

LOGO Row data for economical analyze 1 Warehouse cost estimate Warehouse area : 20(pyeong) Cost : 15,000,000 Incidental expenses middle rack(10EA) = 250,000 x 10 = 2,500,000 Total cost = 15,000, ,500,000 = 17,500,000

LOGO Method of economical analyze Depreciation(Decline-balance method) 2 ND-factorDnBn 00066,000, Bn x factor = 17,085,126Bn – Dn1 =48,914, Dn1 x factor = 12,662,376Bn1 – Dn2 = 36,252, Dn9 x factor. Bn 8 – Dn9 3,300,000(Salvage value) N=Machine’s durable years(10) 0.05 = Salvage value A Compound Interest

LOGO Method of economical analyze Wages calculated according to the wage increase 4ponit moving average 2

LOGO Economical analyze 3 Actual NYearForecast increasePay ₩ 170,449, % ₩ 179,926, % ₩ 188,707, % ₩ 197,331, % ₩ 207,252, % ₩ 217,634, % ₩ 228,236, % ₩ 239,351, % ₩ 251,185, % ₩ 263,553, % ₩ 276,474,386 SUM of payment ₩ 2,420,103,593 Calculate future wage 10 years trough 4point moving average forecast method (Wage increase)

LOGO Economical analyze 3 After YearForecast IncreasePayD-factorDnBn ₩ 143,000, ₩ 66,000, % ₩ 150,951, ₩ 17,085,126 ₩ 48,914, % ₩ 158,317, ₩ 12,662,376 ₩ 36,252, % ₩ 165,553, ₩ 9,384,523 ₩ 26,867, % ₩ 173,876, ₩ 6,955,193 ₩ 19,912, % ₩ 182,586, ₩ 5,154,733 ₩ 14,758, % ₩ 191,481, ₩ 3,820,350 ₩ 10,937, % ₩ 200,805, ₩ 2,831,393 ₩ 8,106, % ₩ 210,734, ₩ 2,098,443 ₩ 6,007, % ₩ 221,111, ₩ 1,555,228 ₩ 4,452, % ₩ 231,950, ₩ 1,152,633 ₩ 3,300,000 SUM ₩ 2,030,369,757 ₩ 62,700,000 ₩ 66,000, SUM of pay and total depreciation value (1) ₩ 2,093,069,757 SUM of (1) and Warehouse investment ₩ 2,110,569,757 Machine’s cost basis : 66,000,000 66,000,000 x ,914,874 x ,252,498 x ,867,975 x ,912,782 x ,758,049 x ,937,698 x ,106,305 x ,007,862 x ,452,633 x ,000, ,085,126 48,914, ,662,376 36,252, ,384,523 26,867, ,955,193 19,912, ,154,733 14,758, ,820,350 10,937, ,831,393 8,106, ,098,443 6,007, ,555,228 4,452, ,152,633 2,030,369, ,700,000 2,093,069, ,500,000

LOGO Result Actual 4 After NYear Forecast Factor Pay ₩ 170,449, % ₩ 179,926, % ₩ 188,707, % ₩ 197,331, % ₩ 207,252, % ₩ 217,634, % ₩ 228,236, % ₩ 239,351, % ₩ 251,185, % ₩ 263,553, % ₩ 276,474,386 SUM of payment ₩ 2,420,103,593 YearForecast FactorPayD-factorDnBn ₩ 143,000, ₩ 66,000, % ₩ 150,951, ₩ 17,085,126 ₩ 48,914, % ₩ 158,317, ₩ 12,662,376 ₩ 36,252, % ₩ 165,553, ₩ 9,384,523 ₩ 26,867, % ₩ 173,876, ₩ 6,955,193 ₩ 19,912, % ₩ 182,586, ₩ 5,154,733 ₩ 14,758, % ₩ 191,481, ₩ 3,820,350 ₩ 10,937, % ₩ 200,805, ₩ 2,831,393 ₩ 8,106, % ₩ 210,734, ₩ 2,098,443 ₩ 6,007, % ₩ 221,111, ₩ 1,555,228 ₩ 4,452, % ₩ 231,950, ₩ 1,152,633 ₩ 3,300,000 SUM ₩ 2,030,369,75 7 ₩ 62,700,000 ₩ 66,000, SUM of pay and total depreciation value (1) ₩ 2,093,069,75 7 SUM of (1) and Warehouse investment ₩ 2,110,569,75 7 Salvage Value 0.05% Total Depreciation value

LOGO Result 4 Alternative A(Operation like present) For worker wages during 10 years the future 2,420,103,593 won occurrence Alternative B(1 Equipment and 1 workers increase) As equipment investment expense, worker wages and warehouse investment expense during 10 years the future 2,110,569,757 won occurrence So, it is reasonable that select alternative B

LOGO Week Report the plan Visit to field Process form grasp Error process analysis Productivity / Defective ratio analysis Line-Balance analysis Simulation modeling Economical evaluation Resultant report Schedules 4 PlanRun 5

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