1. LOGO Capstone Design Economic analysis through line balancing

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

3. 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

4. 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

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

6. 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 2004-2007919.35%1,822,26110.05%1,825,6609.88% 자료출처 : ( 주 ) 밸류애드

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

8. LOGO Week345678910111213141516 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

9. LOGO

10. Capstone Design Economic analysis through line balancing

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

12. 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 : 1235-21 ok-dong, gwangsangu

13. LOGO Production Flow Factory inside photo 2

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

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

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

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

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

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

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

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

22. LOGO Week345678910111213141516 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

23. LOGO

24. Capstone Design Economic analysis through line balancing

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

26. 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)

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

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

29. LOGO Defective ratio & Productivity analysis 3

30. LOGO Week345678910111213141516 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

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32. Capstone Design Economic analysis through line balancing

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

34. LOGO Calculation of objectives cycle-time Process flow photo 1

35. 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

36. 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 = 94.19 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

37. LOGO Calculate the minimum workplace 2..

38. LOGO Calculate the minimum workplace 2 Process name Time(Sec) 1 machine 4 machine 1 machine ※ Note : Currently Efficiency = 41.86 %..

39. LOGO Relationship between number of equipment and line efficiency 3 306090120150180210270240330360300 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Cycle-time Number of equipment Efficiency 41.86 % 69.42 % 79.51 % 244.16 sec 159.1 sec 243 sec 293 sec 208 sec 74.29 % 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)

40. LOGO Week345678910111213141516 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

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42. Capstone Design Economic analysis through line balancing

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

44. 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

45. 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

46. 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

47. LOGO Raw data for simulation Number of equipment to satisfy 94.12 seconds Time(sec) Process name 2 94.12 / sec Used 3 Lathe turning machines cycle time = 66.67 sec 3,125 EA per month 8,100 EA per month

48. 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 = 94.12 sec Centering : 25sec Lathe turning : 200sec Heat treatment : 40sec Press-in : 25sec Form rolling : 35sec Polishing : 18sec Tap : 50sec 2

49. 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

50. LOGO Simulation modeling Used 3 lathe turning machines 3

51. 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

52. 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

53. LOGO Week345678910111213141516 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

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

55. LOGO

56. Capstone Design Economic analysis through line balancing

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

58. 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

59. 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 = 1,116,720 + 207,360 = 1,324,080 Increase machine / year = 1,324,080 x 9(worker) = 143,000,640

60. 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) = 127,111,680 + 433,338,240 = 170,449,920 Minimum wage increase rate Year2008200920102011 Increase rate8.3 %6.1 %2.8 %5.1 %

61. 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 = 15,000,000 + 2,500,000 = 17,500,000

62. LOGO Method of economical analyze Depreciation(Decline-balance method) 2 ND-factorDnBn 00066,000,000 10.2588Bn x factor = 17,085,126Bn – Dn1 =48,914,874 20.2588Dn1 x factor = 12,662,376Bn1 – Dn2 = 36,252,498. 10 0.2588. 0.2588. Dn9 x factor. Bn 8 – Dn9 3,300,000(Salvage value) N=Machine’s durable years(10) 0.05 = Salvage value A Compound Interest

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

64. LOGO Economical analyze 3 Actual NYearForecast increasePay 02011- ₩ 170,449,920 120125.56% ₩ 179,926,936 220134.88% ₩ 188,707,370 320144.57% ₩ 197,331,297 420155.03% ₩ 207,252,128 520165.01% ₩ 217,634,164 620174.87% ₩ 228,236,688 720184.87% ₩ 239,351,013 820194.94% ₩ 251,185,868 920204.92% ₩ 263,553,823 1020214.90% ₩ 276,474,386 SUM of payment ₩ 2,420,103,593 Calculate future wage 10 years trough 4point moving average forecast method (Wage increase)

65. LOGO Economical analyze 3 After YearForecast IncreasePayD-factorDnBn 2011- ₩ 143,000,640 - - ₩ 66,000,000 20125.56% ₩ 150,951,476 0.258865551 ₩ 17,085,126 ₩ 48,914,874 20134.88% ₩ 158,317,908 0.258865551 ₩ 12,662,376 ₩ 36,252,498 20144.57% ₩ 165,553,036 0.258865551 ₩ 9,384,523 ₩ 26,867,975 20155.03% ₩ 173,876,215 0.258865551 ₩ 6,955,193 ₩ 19,912,782 20165.01% ₩ 182,586,326 0.258865551 ₩ 5,154,733 ₩ 14,758,049 20174.87% ₩ 191,481,419 0.258865551 ₩ 3,820,350 ₩ 10,937,698 20184.87% ₩ 200,805,891 0.258865551 ₩ 2,831,393 ₩ 8,106,305 20194.94% ₩ 210,734,860 0.258865551 ₩ 2,098,443 ₩ 6,007,862 20204.92% ₩ 221,111,077 0.258865551 ₩ 1,555,228 ₩ 4,452,633 20214.90% ₩ 231,950,911 0.258865551 ₩ 1,152,633 ₩ 3,300,000 SUM ₩ 2,030,369,757 ₩ 62,700,000 ₩ 66,000,000.00 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 0.258865551 48,914,874 x 0.258865551 36,252,498 x 0.258865551 26,867,975 x 0.258865551 19,912,782 x 0.258865551 14,758,049 x 0.258865551 10,937,698 x 0.258865551 8,106,305 x 0.258865551 6,007,862 x 0.258865551 4,452,633 x 0.258865551 66,000,000 - 17,085,126 48,914,874 - 12,662,376 36,252,498 - 9,384,523 26,867,975 - 6,955,193 19,912,782 - 5,154,733 14,758,049 - 3,820,350 10,937,698 - 2,831,393 8,106,305 - 2,098,443 6,007,862 - 1,555,228 4,452,633 - 1,152,633 2,030,369,757 + 62,700,000 2,093,069,757 + 17,500,000

66. LOGO Result Actual 4 After NYear Forecast Factor Pay 02011- ₩ 170,449,920 120125.56% ₩ 179,926,936 220134.88% ₩ 188,707,370 320144.57% ₩ 197,331,297 420155.03% ₩ 207,252,128 520165.01% ₩ 217,634,164 620174.87% ₩ 228,236,688 720184.87% ₩ 239,351,013 820194.94% ₩ 251,185,868 920204.92% ₩ 263,553,823 1020214.90% ₩ 276,474,386 SUM of payment ₩ 2,420,103,593 YearForecast FactorPayD-factorDnBn 2011- ₩ 143,000,640 0 0 ₩ 66,000,000 20125.56% ₩ 150,951,476 0.258865551 ₩ 17,085,126 ₩ 48,914,874 20134.88% ₩ 158,317,908 0.258865551 ₩ 12,662,376 ₩ 36,252,498 20144.57% ₩ 165,553,036 0.258865551 ₩ 9,384,523 ₩ 26,867,975 20155.03% ₩ 173,876,215 0.258865551 ₩ 6,955,193 ₩ 19,912,782 20165.01% ₩ 182,586,326 0.258865551 ₩ 5,154,733 ₩ 14,758,049 20174.87% ₩ 191,481,419 0.258865551 ₩ 3,820,350 ₩ 10,937,698 20184.87% ₩ 200,805,891 0.258865551 ₩ 2,831,393 ₩ 8,106,305 20194.94% ₩ 210,734,860 0.258865551 ₩ 2,098,443 ₩ 6,007,862 20204.92% ₩ 221,111,077 0.258865551 ₩ 1,555,228 ₩ 4,452,633 20214.90% ₩ 231,950,911 0.258865551 ₩ 1,152,633 ₩ 3,300,000 SUM ₩ 2,030,369,75 7 ₩ 62,700,000 ₩ 66,000,000.00 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

67. 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

68. LOGO Week345678910111213141516 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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