Case Study about Loss Time Reduction in EPPI Lima, Lipa City, Batangas, Philippines

1. Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Sto. Tomas Branch
A CASE STUDY RELATIVE TO LOSS TIME AND MANPOWER REDUCTION
IN GLASS DELIVERY AT EPSON PRECISION (PHILIPPINES) INC.
by:
Alina, Jassfer D.

2. Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Sto. Tomas Branch
LOSS TIME AND MANPOWER REDUCTION IN GLASS DELIVERY
AT EPSON PRECISION (PHILIPPINES) INC.
I. PROBLEM BACKGROUND
The glass that will be used for RN10 models at IJ Production Scanner Sub-Assembly are
delivered at the Sub- Assembly Kitting Area to Scanner Sub- Assembly Area 5. Those glasses are
used to build a scanner assembly that is a sub component of a printer. The Warehouse
department stated that based on the audit they conducted, waiting time was observed and
currently happening, so they want to convert this loss time (waiting time) to productive time.
The processes involved for glass delivery to Scanner Sub- Assembly Area 5 production line
that can be used to address and solve the problem are as follows:
1. Get parts to the parts location.
2. Deliver the parts to the designated line.
3. Put parts in the buffer location.
4. Get empty jig in the buffer location
5. Go back to the parts location.
6. Waiting occurs.

3. Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Sto. Tomas Branch
Line Handled (3 lines)
Loss Time 4.31 hour
Working time 2.94 hour
Cycle time
Prod Dept. (Air blowers') 5.76 minutes
WHSE Dept. (Glass Delivery) 1.843 minutes
While the production operators are preparing the glass, material handlers have to wait
before they can deliver the glass in the production lines.
Table 1.a Process cycle time
Table 1.b Loss Time and Working Time per Manpower
The Production department air blowers’ process time in table 1.a is inefficient than the
process time of glass delivery of Warehouse department.
In table 1.b, the loss time of material handlers per shift occur when they finish replenishing
the parts in every station. Due to the high contribution of loss time, it is possible to reduce
manpower in the process of glass delivery.
II. PROBLEM STATEMENT
There is an existing waiting time (loss time) in the process of glass delivery at
Warehouse Department – Inkjet Printer Section.
III. OBJECTIVES OF THE STUDY
The objective of the study is to identify if there is a possibility to reduce manpower
from the glass delivery. This objective asserts the statement of the problem with the
general objectives and specific objectives which are the desired outcome of the research
process.
General Objective
The general objective of the study is to determine how to reduce manpower thru
loss time reduction in the said process.

4. Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Sto. Tomas Branch
Specific Objective
These are the following objectives that would like to achieve.
 To check if Material Handlers in glass delivery can handle additional line in
Scanner Sub-Assembly
 To improve the process of Material Handlers that can reduce loss time due to
waiting time
IV. ASSUMPTIONS AND AREAS OF CONSIDERATION
The basic assumptions that can be utilized in preparing the plan, provided by the
Warehouse Departments Inkjet Section are considered. It provides a contact person that
should be coordinated, or discontinuity responsible person for the area.
The Department of Warehouse Efficiency Group Section is the “team leader” in any
manpower budget incident. They should be notified in the event of reducing or adding of
manpower incident that occurs on the EPSON warehouse, or is reported from off- site
regarding an off-site incident. They are also the key vortex of information regarding
incidents.
The following conditions were considered during the study:
1. Cycle Time
 The preparation time for glass preparation/air blow process in production
department. .
 The glass delivery process time by the warehouse manpower to the Scanner
Sub-Assembly Area 5.
2. 2-box system
 2-box system is a system that limits the buffer stock (Work in process) in
every station of the line in EPPI.
 Implementation of 2-box system is extremely difficult to deal with,
regarding changing the line handled by the manpower.

5. Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Sto. Tomas Branch
Standard
Time
Allowance
Factor
WorkHours/
Shift
Cycle/Shift
Parts
Delivery
Line/s Target/Line
Line
Requirement
MP
Requirement
0.04hour 22.71% 7.25hour 177.52hour 40 3 2880glass 72glass 0.4056
Simulation
3. Process
 Currently, the WPS (Work Standard Procedure) for glass delivery contributes
to the high percentage of loss time in EPPI.
V. ALTERNATIVE COURSES OF ACTIONS
1. STICK WITH THE CURRENT SITUATION
For the current design process, the productive time for Material Handlers per shift
(7.25 hours) is 2.94 hours and the non-productive time (loss time) is 4.31 hours. In terms
on manpower count, currently there are 4 Material Handlers for day shift and 2 for night
shift. Each material handler handles 3 lines.
Table 2 Manpower requirement for Glass Delivery
2. ADDITIONAL LINE FOR MATERIAL HANDLERS (REDUCE MANPOWER)
Currently, the cycle time and manpower requirement for Material Handlers are shown in the table
below;
Table 3.1 Existing manpower simulation for glass delivery
TOTAL 5 Manpower 21.55 hours
Line MP Allocation Loss Time Line MP Allocation Loss Time
Line 01 Line 14
Line 02 Line 15
Line 03 Line 16
Line 04 Line 17
Line 05 Line 19
Line 06 Line 18
Line 07
Line 12
Line 13
4.31 hours
4.31 hours
Manpower Requirement
1 Manpower
1 Manpower
1 Manpower
1 Manpower
1 Manpower
Manpower Requirement
4.31 hours
4.31 hours
4.31 hours

6. Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Sto. Tomas Branch
Before After
MP Allocation MP Allocation
Line 01
Line 02
Line 03
Line 04
Line 05
Line 06
Line 07
Line 12
Line 13
Line 14
Line 15
Line 16
Line 17
Line 19
Line 18
TOTAL 5MP 4MP
1MP
1MP
1MP
1MP
1MP
1MP
Manpower Requirement
Line
1MP
1MP
1MP
In the proposed design process, the cycle time and manpower requirement for Material
Handlers are shown in the table below;
Table 3.2 Proposed manpower simulation for glass delivery
Table 3.3 Comparison between 3 lines handled vs 4 lines handled
From table 3.4, the current manpower allocation for the Glass Delivery is 5 Manpower for 15
lines in Scanner Sub-Assembly Area 5. After the study, we came up to a conclusion that the study
can reduce 1 Manpower for the said process. From the current manpower ratio 1 Manpower is to
3 Lines became 1 Manpower is to 4 lines.
Table 3.4 Manpower Allocation for Glass Delivery
TAKT TIME
ALLOWANCE
FACTOR
WORK/HOURS
/ SHIFT
CYCLE/
SHIFT
PARTS
DELIVERY
LINE/S TARGET/LINE
LINE
REQUIREMENT
MP
REQUIREMENT
.05hour 22.71% 7.25 149 40 4 3840 96 0.6454
Simulation
BEFORE AFTER
Loss Time (hours) 4.31 2.57
Working Time (hours) 2.94 4.68
Idle converted to WT 1.74

7. Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Sto. Tomas Branch
The overall problem solving process is captured with five step problem solving technique. This
is the best starting place, giving you a problem-solving overview, and a structured process to
follow. The 5 why technique fits into the analysis stage of the process.
In table 3.5 you saw a Why Table of a personal complain by the material handlers for glass
delivery. It turned out that it was because of the plant layout in Scanner sub-assembly Area 5.
Though there are several possible answers listed in Why Table to address the top problem caused
by the poor plant layout.
Why table fixed the real root cause of the failure – glass delivery problem. The plant layout is
the latent cause. It remains there waiting to trigger more troubles in future. EPPI Company will
have many problems with this layout. This is the companies own worst enemy and by default.
As the researcher of this process, it is clearly that the plant layout of Area 5 is a huge risk.
Should you come up to relay out or put it in an easy way? The latent causes are the most critical
ones to find, but they are usually the hardest to deal with and often they are embarrassing for all
involved.
Finally we get into the region of latency where individual beliefs, values lack of vital knowledge
and personal opinions breach system protection. A failure event should be traced back to its latent
factors.
Table 3.5 5 Why’s Question Worksheet for Glass Delivery
Fit the trolley to the gap
between the lines
Plant re-layout
Go to the MES, and discuss the
problems
Solution
5 Why Question Table
Date: May 12, 2014Team Members: OJT-Alina, SGL J. Federoso, SGL M. Nora
Problem Statement: Personal complain by the material handlers for glass delivery
Recommended Solution: Fit the trolley for glass delivery to the layout in Scanner Sub-Assembly Area 5
Latent Issues: The plant layout of company can cause disturbances both people and machines
Why Questions
3W2H Answers
(with what, when, where, how, how much)
Set standard weight for Jigs
Make a trolley for glass
delivery
Because the Glass and Jigs are heavy
Because the Material Handlers carry it
manually.
Because the Trolley for Glass Delivery cannot
pass/enter between the lines per station
Because the layout in Scanner Sub-Assembly is
to narrow.
Because the Manufacturing Engineering
Section (MES) was responsible for that layout.
1. Why there is a personal complain?
2. Why did the glass and jigs are heavy?
3. Why did the MH carry it manually?
4. Why trolleys cannot enter/pass?
5. Why the layout to narrow?

8. Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Sto. Tomas Branch
Dayshift Nightshift
Alternative 1 0.41 4 3 3 lines 4.31 hours 2.94 hours
Alternative 2 0.65 3 2 4 lines 2.57 hours 4.68 hours
Manpower
Requirement
Manpower Allocated Line
Handle
Loss Time
Working
Time
VI. RECOMMENDATION
Upon the evaluation of the courses of action made, alternative 2 could help in providing
solution to the problem stated.
The following recommendations are offered to the warehouse department inkjet section in
the field of efficiency.
1. Given the changing line handled by the material handlers, the potential loss time or waiting
time can be converted to productive time will be 1.74 hours.
2. From Table 4, while the current manpower ratio of one (1) Manpower to three (3) lines, it
may be advantageous to change the manpower ratio to one (1) Manpower to four (4) lines.
3. From the table 3.5, glass trolley should be fitted to the gap between the lines in Scanner
Sub-assembly to easily pass the trolley.
4. Based on the results of this study, manpower reduction will have a great positive effect to
the weekly manpower budget of the warehouse department (efficiency group)
5. 2-box system should be eliminated, to maximize the manpower requirement in every
process inside the Epson Precision (Philippines) Inc.
The glass delivery current process should remain operational until the proposed design
process and structures are implemented. The concerned departments (Training, Efficiency, and
Production and MES departments) would be adversely affected by this study. Revised processes
and structural changes in line and manpower with the detailed recommendations are contained in
this study.
Table 4 Difference between 3 lines handled to 4 lines handled

9. Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Sto. Tomas Branch
Process: GlassDelivery
Objective: Tocheckif Material Handlersinglassdeliverycanhandle additional line inScannerSub-Assembly
Purpose: Toreduce losstime due towaitingtime
No. ImplementationPlan 7-May 8-May 9-May 12-May 13-May 14-May 15-May 16-May 19-May 20-May 21-May 22-May 23-May
Remarks:On-going(8lineshasnotbeenmaterializedbecause of the 2-box system)
Plan
Actual
Remarks:On-going(4lines)
Plan
Actual
Remarks:The projecthasbeenimplemented.Material Handlerswill handle 4linesforGlassDelivery
Plan
Actual
Plan
Actual
Preparedby:
JassferAlina
Checkedby:
JasonFederoso
Approvedby:
WhSEMGRLouisaSilang
2
3
Checkingandreview of Effectiveness(Glass
Delivery)
4
May,2014
Executingthe proposedtrial.Material Handlerswill
handle 8lines
Executingthe proposedtrial.Material Handlerswill
handle 4lines
1
Discussionwiththe concernedgroupsregardingthe
proposedtrial inGlassdelivery
Plan
Actual
VII. IMPLEMENTATION PLAN
Table 5 Gantt chart for Implementation Plan
In the table 5 above, the material handlers will handle 8 lines schedule at May 8th
. The
tasks are linked, so we have set a ‘Must Start On’ constraint. But because of the 2-box system, 1
Manpower is to 8 lines was not materialize. 1
So, we come up to a solution that material handlers will handle 4 lines instead of 8 lines
that will also consider the 2 box-systems. At May 9th
, ‘Must Start On’ must set to start the trial for
6 days. May 19th
, 1 week for checking and review of the effectiveness of Material handlers that
will handle 4 lines have been materializing.
1
2box system – Only 2 buffer/stocks of replenishment per process in EPPI.

10. Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Sto. Tomas Branch
As a result of the study,
1. Monthly manpower budget reduced (manpower cost)
2. Manpower count reduced
Before After
Dayshift Nightshift Dayshift Nightshift
Manpower Count 5 5 4 4
3. Loss time (Non-productive time) reduced
Before After
Loss Time 4.31 hours 2.57 hours
Working Time 2.94 hours 4.68 hours
Idle time converted to Working time 1.75 hours
4. The Glass delivery process maximized
5. Maximized manpower allocation