Improve manufacturing productivity through process re-engineering

• Main Author: Goh, Yoong Hiang.
• Other Authors: School of Mechanical and Aerospace Engineering
• Format: Final Year Project
• Language: English
• Published: 2009
• Subjects: DRNTU::Engineering::Manufacturing::Production management
• Online Access: http://hdl.handle.net/10356/16149
• Institution: Nanyang Technological University

This project involves a broad-based process re-engineering approach to improve manufacturing productivity by means of direct labor reduction, which is a major contributor of manufacturing cost especially in Singapore where labor costs are among the highest in the region. This project focuses on productivity improvements in the following areas: a) Optimization of material flow. b) Consolidation of manpower resources from Quality Assurance and Engineering teams into a single Production team to achieve synergy. c) Reviewing and reducing redundant processes in process quality control. d) Evaluating and implementing process control by sampling. e) Outsourcing of labor intensive processes to suppliers. f) Automation of standard processes to reduce operator dependency. The project aims to double manufacturing productivity from 541 units as of year ending 2007 to 1082 units per direct labor by the end of year 2008, which is equivalent to an annual cost savings of nearly $4 million. The project investigates the possibilities that exist for achieving direct headcount reduction and specifically identifies action items that are selected for implementing the cost reduction measures. In view of an aggressive headcount reduction target, it is vital that each action item has an indicative number of headcounts to be reduced, and a precise schedule for its implementation. A detailed description of how headcount reduction is achieved within the short timeframe required, the challenges faced during planning and execution while not compromising on quality are reported for each action item. Valuable lessons learnt in the course of implementing the measures under challenging conditions, to address the sensitive issue of headcount reduction for improving manufacturing productivity are also summarized.