Implementation Of First In First Out System In Sub-Assembly Components In Casting Industry

Lim, Yee Shing (2020) Implementation Of First In First Out System In Sub-Assembly Components In Casting Industry. Project Report. Universiti Teknikal Malaysia Melaka, Melaka, Malaysia. (Submitted)

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Abstract

According to Jean experts, there are seven waste including overproduction, inventory, transport, process, rework, waiting and unnecessary motion. In the research, there are two major wastes involved which is the inventory waste and transport waste. The problem faced by the company is insufficient storing capacity and high moving time of sub-assembly components. Lean Manufacturing (LM) is the common approach applied to eliminate waste. A door hardware casting company in Melaka has implemented First In First Out (FIFO) design as the main solution to increase storage capacity and reduce the moving time of subassembly components. Lean tools such as the Ishikawa diagram and SS are implemented to aid the FIFO system. The objectives of the research are to study the current system in the warehouse, to design the FIFO system in the warehouse then to implement FIFO system in the warehouse. This study focused on the sub-assembly components in the indoor warehouse area. The situation in the warehouse before implementing FIFO was studied by using methodology such as observation, brainstorming sessions, semi-structured interview and referring to secondary sources. The FIFO system was proposed by redesigning the warehouse, the design tools included are Morphological chart, concept screening and concept scoring. New Standard Operating Procedure (SOP) is proposed. The verification and validation of the FIFO system were done by making a comparison before and after implementing FIFO system. By implementing a FIFO system, the storage capacity can be increased and the moving time of sub-assembly components can be reduced. Increased storage capacity and reduced components moving time will result in reduction of inventory waste and transport waste.

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