Comparison Of Productivity Of Small Scale Industry Using Stopwatch Time Study And Cost Benefit Analysis Of Productivity Improvement Project

Mohd Nor Alif Ikhwan, Baharom (2013) Comparison Of Productivity Of Small Scale Industry Using Stopwatch Time Study And Cost Benefit Analysis Of Productivity Improvement Project. Project Report. UTeM, Melaka, Malaysia. (Submitted)

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Abstract

Productivity can be defmed as the ratio of input over output data of the several elements in the system such as labor, machine, material and others that relate with manufacturing or services industry. It's also used by top management level to identify and measure the current company performance of the operation among the competitors. In this project, the productivity was studied in a Semi Medium Industry that based on rubber cutting process and monthly operating cost to produce the product of Firestop collar. The conventional method of cutting process was identified as a major problem in the operation that produce the product defect and wasting a lot of operation cycle time. This problem led to the late part delivery to the customer and also affected the company's monthly operating cost. To overcome of the problem, the detail of process flow had been clarified to understanding the process and also data of process cycle time and monthly operating cost was collected based on the conventional method that's been practiced. As an average, the conventional method required by 31:53 minutes to complete the cutting process and able to gain RM 115,934 within a year of operation. The repeated steps of cutting process in manual operation defmed as the root cause of the problem happen in the conventional method. After that, the suggested of improvement was made to implement the automated cutting machine rather than using manual cutting operation in the conventional method. Based on the analysis, the comparison between conventional and improvement method had the potential to increase the process cycle time from 80.2% and increase the company profit value of 8.19% in accumulated net cash.

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