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conssumption reduction project

Info: 6607 words (26 pages) Essay
Published: 23rd Sep 2019 in Project Management

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  1. Objectives and the plan for the project

Future goal of the whole facility is to minimize or completely exclude the human factor. However, it will be hardly possible to completely exclude human factor, there is still a need for manual labour work and it will stay like that for quite some time.

Facility is in work 24/7 and Predetermination Time Standard method would be used on a prediction that 2000 workers (probably much more) across 4 shifts are using gowns and working in the clean room.

The goal of this project is to cut down the consumption of gowning equipment for one gown less per employee per week.

This project will try to replace existing system of gowning in the clean room facility. This will lead to cost reductions and to a better overlook of consumption of gowns. Every employee has a designated hanger for the gown as well. The idea is to keep used gowns along with boots and caps on hangers, it should reduce the consumption. Setup of the system is built in the way that the usage of any part of gowning equipment is practically free and unmonitored. That leads to excessive spending of the equipment and increasing costs of cleaning gowns.

5e is a cost of one fully cleaned head – to – toe set of gowning equipment.

Existing rule is that each employee should use one gown per week. With putting log-on cabinets or vending machines in operation, company would get a better control over consumption of gowning equipment. Each employee could obtain equipment in his suitable size by logging on the cabinet. Following steps from the screen of the cabinet for current user would be offered his selected size of the pack which he previously choose through the program, as well as two categories of equipment used within the clean room.

Putting log-in cabinets in use would also release some extra room within the gown room storage place and it would give space for installing more hangers.

Certain restraints would be applied, such as every employee could take only two sets of gowning equipment in one work week. Sets would be packed in one pack. Sizes would be available online on company’s home page where each employee would choose and register their size of equipment. Email would circle around with description and the details about size with details on how to manage with the new setup.

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There is another idea, to change type of a gown, instead of putting on the cap separately, the idea would be to have the cap built in the gown and to eliminate the need for collecting and spending money on cleaning dirty caps. It would be more economical, more practical and less need for labor work. Negative side of this is the need to change the type of all gowns in the facility which could lead to some bigger expenses and significantly longer period of return of investment.

  1. Existing situation and main problems

As an existing situation there is a choice between different sizes of gowns, caps and boots. Every employee can change existing gown at any stage of work day or work week. At the gown room entrance there is several small storage spaces for gowning equipment built in the wall. After obtaining proper sized gowning equipment, next stage is gowning up and preparation for the entrance to the clean room. This process seems very easy to handle and it comes automatically for every employee after some time.

There is one established system for monitoring and control of the gown room equipment which seems not to be efficient. Each and every employee on his first working day is getting small sensor along with the badge. Same type of the sensor is stitched in every part of the gowning equipment and sensor with a badge is complying with the gowning equipment by passing through “checkpoint” on the entrance of the clean room.

Current rule is that every employee should use one gown per week per person and by random observation, there is too many gowns spent by more than 50% of overall number of employees who are using the gown room. Sometimes employees can spend even more than 2 gowns per day, which leads us to a figure of 8 or more gowns per work week, per employee in a worst-case scenario. Further monitoring of the gown room activities will be needed to get the actual average number of gowns spent.

As mentioned, current system is formed that every part of the garment is available for use at any time. After entering the gown room and putting on hair net, beard net and shoe covers, there is already mentioned wall with holes, so to say. Every hole is occupied with a specific part of the clean room garments, hats, boots or gown. There is several different sizes from S to 4XL suitable for every employee and the choice is made on the spot. When the gown is chosen, employee continues his way to the part of the gown room set for putting on the garment. It goes in the sequence from head to toe. That part of the gown room has hangers with numbers which are assigned to every employee. Gown room is ventilated constantly and all equipment which has to be brought to the clean room needs to be wiped previously with alcohol wipes. After passing through the “checkpoint” at the clean room entrance, everything is set for work inside the clean room.

 

When is time to go out from the clean room, taking down the gowning equipment goes opposite of gowning up, from toe to the head. Garment is set on the hanger to air out and to be ready for the next clean room visit.

New system would allow the usage of two clean room garments per week. If there is a need for third one, before taking the clean garment from the cabinet, system will ask an  explanation for that on the screen and it needs to be typed in. It will be registered in the system on the ID number of the employee who logged the explanation.

The whole task of taking out the garment from the cabinet will not be possible without using an electronic badge assigned for every employee. After applying for an access to the clean room and stating the reason why, badge is used primarily to open different doors where employee have an access. Basic idea of applying an ID badge within a company is to prevent unauthorized access to the company’s facilities. For every employee access is granted from the entrance of the facility, all up to the level of his involvement in a certain department. Every request for an access has to go through authorized owner or manager. Upon the end of the contract or leaving the company for an employment in a different company, now former employee has a denied access to the company for a year time. Applying that, the company keeps their right to discretion.

  1.  Work measurements technique used in the process

Method in use would be Predetermined Time Standards. It is a work estimation method whereby times built up for basic human movements (movement and the conditions under which it is made) are utilized to develop the ideal opportunity for an occupation at a defined level of execution (Kanawaty, 1992).

Kanawaty further describes basic human motions which are important for this research and development, as well as advantages of this motion study over stop watch time study.

The basic point of PTS systems can be easily illustrated by looking through several simple work steps in a process such as putting a washer on a bolt. The worker would reach to the washer, grasp the washer, move the washer to the bolt, position it on the bolt and release it (Kanawaty, 1992).

Actions and motions used by worker is described by seeing each and every work element which is completing the work cycle (Groover, 2014).

Utilizes a Methods-Time Measurement that is used primarily in industrial settings to determine the standard time for completing an elemental task (Byrne, 2012).

2

In the case of facility in question, those movements would be reach with a badge to the cabinet to log on, grasp the pack of equipment, move it out from the cabinet, position and hold the pack in the hand, release and end the process by logging off from the system.

PTS system can offer various positive solutions over stop-watch time system. With PTS frameworks one time is demonstrated for a given movement, regardless of where such a movement is performed. In stop-watch time it isn’t all about a movement as a succession of movements making up a task that is coordinated. Timing by direct perception and rating can in some cases set on irregularity (Kanawaty, 1992).

Reactions of PMTS identify with their powerlessness to give information to developments made under “unnatural” conditions, (for example, working in cramped conditions or with an unnatural body act) or for mental procedures and their trouble in adapting to work which is liable to intrusions. Nonetheless, different frameworks have been inferred for “office work,” which incorporate errands with a straightforward and unsurprising mental substance.

Advantages of Work Measurement

-          Common Currency for the assessment and correlation of a wide range of work.

-          Methods Improvement

-          Performance Standard arrangement

-          Allows for extra remuneration for better execution

-          Cost decrease by concentrating on efficiency enhancement and disposal of waste all the while

  1. Feasibility of other areas on the project

4.1.           Technical – limitation of spending 2 gowns per person per week, better monitoring of gowns spent, training would be provided for employees.

4.2.           Operational – Putting in control spending clean gowning equipment by applying new system, keeping one small part of old system just in case.

4.3.           Economical – Beside financial benefits, there will be significantly reduced waste of plastic wrapping material, it would result in less waste and less labour work regarding waste management and overall manipulation of equipment.

4.4.           Social – That will affect employees in a way to be more responsible towards equipment they use.

  1. Estimated performance of the new system – Time Study and Gantt Chart

Time study is conducted and the results are shown in the table below. Performance time of the new system is dependable on the speed of the computer attached on the cabinet after user log on to it.

Complete operation of obtaining gowning equipment from the cabinet would not last more than 2 minutes, which would be approximately in the same timely manner like the old system.

5.1.           Time study

 

 

Rating

Observed minutes

Basic minutes

BMs/unit

Total BM

 

Frequency

 

SMs/unit

 

A

Reach for the cabinet to log on

 

2000

0.05

0.05

0.1

100

2/1

0.115

B

Type the information/choose a size option

 

2000

0.08

0.16

0.33

100

2/1

0.38

C

Take the garment pack from the cabinet

 

2000

0.08

0.08

0.1

100

2/1

0.115

D

Touch the log out button on the screen

 

2000

0.05

0.05

0.1

100

2/1

0.115

E

Proceed to the gown room

 

2000

0.08

0.08

0.4

160

5/1

0.46

     TOTAL                                                                                                                                      1.185

Table 1 : Results from the time study after examination of the new system

5.2.           Gantt Chart

1min

2 mins

A

B

C

D

E

Table 2 : Gantt chart

“Time study is a work measurement technique for recording the times of performing a certain specific job or its elements carried out under specified conditions, and for analysing the data so as to obtain the time necessary for an operator to carry it out at a defined rate of performance”  (Kanawaty, 1992).

A Gantt graph is a sort of bar diagram that delineates a task plan. This diagram records the undertakings to be performed on the vertical hub, and time interims on the horizontal level. The width of the flat bars in the chart demonstrates the length of every operation. Gantt diagrams delineate the beginning and completion times of the terminal components and summay components of a task.

Gantt chart and time study in this case are based only on brand new installed system. All together it takes 1.18 minutes from the start until the end of task.

  1. Evaluation of proposed solutions and return of investment

After putting together all expenses and gains, return of investment would be possible after 3 months of implementation of the new system.

To put it in numbers:

-          After 1 month of investment the period of return of investment is still ongoing – approximately €8500 of loss;

-          After 3 months situation is changed significantly, investment is returned and approximately same amount is saved – €88000,

-          After 6 months amount of saved money goes up and steady – €224500,

-          And finally, after 1 year savings are reached €497500.

 

 

  1. Proposed solutions and information from the modules

 

 

7.1.           Logistics and Supply Chain – One man in Supply Chain operations would not be needed anymore, goods are coming already packed and there is less work than before.

7.2.           Emerging Technologies – Configuring a program which will gather information about sizes of equipment and qualify those choices made by employees into a different equipment packs. Employee will also have a chance to request a change of some part of equipment size through that program by logging on with their username and password. Badge access is also important in the process, without the ID badge employee is unable to be the part of the process.

7.3.           Engineering Principles – Time Study is described and will be undertaken along with the description of Predetermined Time Standards method.

7.4.           Professional Practice – Just in case, it should be needed to pass web-based training to make sure everyone understood the new system. Also, PowerPoint presentation would be sent to everyone on their email addresses to serve as a reminder.

7.5.           Finance – Used to explore and putting on paper all gains and losses in the whole process, it is basically the most important part of the project. With a simple table it gets much easier to foresee all benefits and troubles from the financial side all the way to the end.

  1. Financial point of view on the project

 

In a table below, results from the financial side are as follows:

Payments

Q0

Q1

Q2

Q3

Q4

3x Cabinet cost

(43500)

Vendors and setup cost

(5000)

Maintenance

(1000)

(1000)

(1000)

(1000)

 

 

Receipts

Less equipment consumption

130000

130000

130000

130000

Package cost

2600

2600

2600

2600

One employee less needed

5000

5000

5000

5000

Total payments

(48500)

(1000)

(1000)

(1000)

(1000)

Total receipts

136500

136500

136500

136500

Total Net Saved Value

88000

224500

361000

497500

Table 3: Financial results of the project

8.1.           Description of figures

          Payments

3x cabinet cost – one cabinet capable to do the operation similar as a vending machine, with the software installed, costs between €13000 and 16000. For this project, amount of that cost is been taken as an average and it is €14500. Plan is to put in function 3 of those cabinets one beside the other, there is more than enough of space for them.

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Vendors and setup cost – it will take not more than couple of days to put the system in function and not more than one week to have results of initial test. Until then, area will be blocked with barriers for safety reasons, but employees will still be able to obtain the equipment in the usual way.

Maintenance – once per week preventive check up of the system will be needed. Software and hardware has to be checked to make sure everything is in a perfect working order. It would be performed by network and system engineers already employed within the company and the amount stated in the table is for possible emergency and/or regular maintenance.

 

 

 

          Receipts

Less equipment consumption – by the plan, one clean room garment less spent per week on a sample of 2000 employees means that in one quarter (13 weeks) 26000 garments would be kept clean. Average price of cleaning one clean room garment is €5 and it gives us the amount of €130000 per quarter.

Packing cost – so far, clean room garment has been obtained in three parts: hat, gown and boots. The new system would change current system into packing those three parts of the garment together in one package, so instead of choosing 3 parts, employees would get complete equipment in one single pack. That way, plastic wrapping would be much less consumed and packing the equipment would cost less. The amount in the table is taken by deducting €0.10 per wrapping and packing one clean room garment per quarter on the same sample of 2000 employees.

One employee less needed – as there would be much less work in terms of supplying the equipment and taking care of equipment which is ready for cleaning, one employee could be allocated to some other open position within the company. His minimum yearly pay has been taken as €20000 and that means €5000 per quarter extra saved.

Totals net saved value section is showing Q0 as an initial investment period before putting the system into a working order. So in that period shown figures are only expenses and there is no return of investment there. It begins with Q1, the total net value number in Q1 is a difference between total payments in Q0 and total receipts in Q1, result which is achieved in Q0 total payments is deducted from Q1 total receipts.

It goes on through every quarter with adding up the saved value and deducting the expense (maintenance). At the end of fourth quarter, total net saved value is €497500.

Shown figures are taken as highest for the payments and lowest for receipts (savings) so that the complete saved amount can be kept on a bare minimum.

Sample of employees has been taken as a round number of 2000 out of 5000, that number is much bigger in reality, but if the bare minimum is known, it is easier to manipulate with bigger numbers afterwards in term of saving a bigger amount.

 

  1. Risk mitigation

Risk mitigation is designed to:

-          Figure out the main causes of threats to the project that have been recognized and evaluated way before period of the risk management procedure.

-          Assess interactions of the risk and common points.

-          Distinguishing other ways of mitigation procedures, strategies, and approach for each medium or high level risk.

-          Taking care of organizing other options of mitigation.

-          Select and gather the resources needed in case of applying alternative solutions..

-          Effectively communicate the mitigation plan with other members of the team.

In other words described, mitigation of the risk is there to search the way to reduce the impact of the possible risk and the loss related with that risk. Mitigating the risk will not make the risk smaller at all, actually it accepts the fact that the business will not be capable to stop some types of losses. After all, what the risk mitigation does is planning to limit the budgetary impact on the company in case something goes wrong.

There is no big possibility of the risk in conducting this project except in vendors management, their timing and organization of work.

Biggest risk is connected with people in this case, if maintenance fails (if something goes wrong with the program or with the cabinet’s software or hardware) there will be still employee who will be dealing with gowning equipment, because there will be still some space for small part of the old system beside new one. That employee will be there to monitor correct usage of the equipment for the time until maintenance work is done and until the whole process comes back to usual. There is also already 2 employees in work at the entrance of the gown room and their role is to make sure that all gown room protocols are followed.

All stated risks in the table below are on a low level:

Too many people obtaining the equipment at once

Congestion, waiting time

Setting up the short manual beside the cabinet, having a help in term of third party guidance

Weak maintenance response

System failure, putting pressure on employees for extra monitoring of the old system

Having system and network team always available for critical situations

Not having all sizes of equipment in stock

Employees not able to proceed into clean room and continue with their work

All communication levels with suppliers has to work timely and properly

 

 

 

  1.    Alternatives

There is a few different alternatives and some new points of views, so to say. They could be applied as an update when the new system gets into perfect working order.

First one is return the relocated garment employee back to the old place of work if that workplace remains busy or becomes even more busier, or taking in a new employee. That would lower the annual saving achievement of this project, but it would not have a big effect to the savings in general.

Before the project starts, survey could be conducted among the employees over their business email about the size of the garment, program would collect results and at the end, ratio in size between gowns, boots and hats could be seen. Given those results, package for every employee could be created and memorized in the system, so that logging on the cabinet and taking the garment out of it would go smoothly; there would be no need in choosing any options from the screen, computer would automatically recognize the badge and release the memorized size of the garment for that employee from the cabinet.

That information could be changed of course, there would be installed small add-on program and the link would be sent to all recipients via email, from their account they could easily change the garment size setting in the system at any time.

One part of old system would be retained just in case. Instead of the place for the electronic cabinets, there would be still several holes in the wall for the garments which would be loaded by employees of the clean room garment company. If some part of the system goes wrong, there would be still a way to get the clean room garment and to proceed to the clean room for employees in order to continue the clean room work.

Wrapping and packing of the clean room garments can be done in recyclable paper instead of plastic, it is one time use material, it doesn’t get dirty and it would be easily collected, recycled and reused. Also, there is no danger of bringing paper particles into the clean room because the garment is unpacked and the paper is disposed in the gown room, before the entrance in the clean room.

When risks are on the table, there should be six questions asked:

3.1. What are we trying to do?

First question manages the objective setting and understanding the scope of work that we have here. We are trying to change the clean room gowning system in a semiconductor company. A large part of the system will remain the same, only one part of it which will provide a better control over the usage of the equipment will be managed in a different way. Planning is a crucial factor before setting up qualified teams and managing resources.

3.2. What might affect us?

Is there anything in the future that can help or create problems for the project? Identified risk at this stage is mainly not having competent team members, possibility of making a mistake is fairly big wherever is human factor involved. On the other hand, having highly skilled team members can be of great benefit.

3.3. Which of those things that might affect us are most important?

Under this question risk prioritizing in should go in 2 key dimensions: how likely is to happen and what effect would have on our goals, positive or negative. Treats of having exceptional team members are in saving time crucial for the whole project organization and putting costs to a minimum. Main bad effect is not to finish the project on time and to have a sloppy organization of the whole process which can have a bad influence to the reputation of the company.

3.4. What should we do about it?

To avoid being victim of uncertainty, now we can create responses since we are familiar with risks. In the given time we can work around those risks, avoid them or make them work for us. Putting work into better communication is always a good decision and very often a good method to eliminate problems before they occur.

3.5. After doing it, did it worked?

This question should not make any problem if everything went as planned so far. If happens that the main idea of mitigating risk did not work, we still have a chance to modify it.

3.6. What changed?

We need to make sure to spot new risks that have arisen since the last time the action was taken. Constantly observing and being cautious about every action within the project makes it successful.

If the risk process is built up between these six questions, if becomes easily manageable (RiskDoctorVideo, 2004).

 

  1.   Conclusion

Overall, in man’s nature is not written that he is easily prepared for changes.

In this case, it would not take too much time for employees to get used to slightly changed system.

The best way to support the upgrades managed by Lean tools and strategies, is to completely grasp a base of Employee Empowerment. Lean is a constant change process, so you may not see quick change or improvement. It is hard in the beginning, but in the event that you stay with it, with good intended plans, and an eye on the objective, you will, in the long run, understand a more beneficial and steady work composition and accordingly you will start to see the upgrades in processes.
Having everything planned and ready means that everything is in place for taking action; timing, sources, finances, hiring appropriate people, quality, outcome, and all other bits and pieces in between. Very important is to keep on the planned path all the way until the end, as any change can endanger time scope of the whole project.

Project plan takes the place when time comes to check every accomplished step in the project to make sure in maintaining correct direction of the project, and to bring the project back on track in case of getting off planned path.

With everything taken into account, return of investment in this project would be possible after first 5 weeks of implementation, but since the observed time of investment return is divided into quarters, full return of investment is possible after first quarter of implementation. After putting work in sorting out the training and providing directions of use for vendors and other personnel, system would be very simply adapted and maintained in perfect working order within the facility as a whole. Because of the fact that this would be one time investment, longer the period of using new system, the more significant saving will be.

  1.    Bibliography

 

  1. Byrne, H. (2012). Work Measurement Methods. North Carolina State University.
  2. Groover, M. P. (2014). Work Systems: The Methods Measurement and Management of Work (1 ed.). Pearson.
  3. Kanawaty, G. (1992). Introduction to work study (4th ed.). Geneva: International Labour Office.
  4. RiskDoctorVideo. (2004). Risk management basics: What exactly is it? RiskDoctorVideo.

 

 

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