OPTIMIZATION OF MATERIAL FLOW AND

PRODUCTION LAYOUT USING VALUE STREAM

MAPPING
A Master Thesis Conducted at the Production Plant of JK FENNER INDIA LTD.

ABISHEK SRINIVASAN
(180025935)
JUNE 2019

SCHOOL OF SCIENCE AND ENGINEERING

INDUSTRIAL ENGINEERING AND MANAGEMENT
UNIVERSITY OF DUNDEE
ABSTRACT

Material motion and handling are needed activities, but are commonly considered as
waste. It is time-consuming, expensive and unproductive to move and handle material
more times and longer than needed. A suitable material handling (MH) system with a
suitable design of the plant is therefore recommended.

The aim of this thesis is to investigate alternatives for improving material flow and
material handling in the production area. This includes a study of material flow from
storage to production areas and material handling in a section of manufacturing. If
needed to improve the material flow, it is suggested to modify the layout design. A case
study in which information were gathered from documents, observations and surveys is
the research method for this thesis. The research demonstrates that manual material
handling (MMH) accounts for 9 percent of the manufacturing time of an article. These
operations are categorized as waste and essential, but they do not add any value. The
same applies to the stream of material.The present storage location, operations and
absence of adequate framework for handling and moving material cause unnecessary
distances of movements.

This study's input is a list of suggestions to improve the flow and handling of materials.
Changes to improvements include the accessibility of suitable equipment, storing
materials closer to operations, and investing with robots cameras in automation and
vision systems. A change in the design of the manufacturing region can further improve
the material flow and the manner the material is treated. Connecting and rearranging
activities can shorten and facilitate material motion with sufficient space for material
handling.

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1 INTRODUCTION

There is a pressure on manufacturing companies to improve their production related to

lowering costs and increasing productivity (Denkena, et al., 2014). The manner in
which material is checked and oversaw impacts the costs, an improper way increments
costs and as well as decreases productivity (Hassan, 2010). The facility layout impacts
the manufacturing costs and an organization’s profitability (Drira, et al., 2007), where a
mismatch between facility layout and the manner in which materials are moved and
handled can be devastating (Aiello, et al., 2002; Drira, et al., 2007).The progression of
material in manufacturing processes is of incredible significance so as to fulfil customer
demand on time and look after customer satisfaction(Green, et al., 2010), staying
focused and expanding the profitability of the organization (Rouwenhorst, et al., 2000).
The aim of material stream is that it ought to be nonstop also, synchronous. Continuous
entails that the stream ought to have no interruptions and no unnecessary inventories.
Synchronous means running smooth at a similar pace (Harrison, et al., 2014). Therefore,
an effective material handling framework is vital, which results in expanded efficiency
(Green, et al., 2010).

Material handling can be expensive and is considered, however fundamental, as a non-

value adding function (Green, et al., 2010). Green et al. (2010) argue that storing and
moving material can be an intense resource, both in terms of the machinery required and
the work required. Manual material handling (MMH) involves manual lifting, putting
down, conveying, pushing and pulling operations that are extremely regular in
production (Deros, et al., 2015). As Deros et al. (2015) stated, the advantage of MMH is
its adaptability and lower costs when dealing with lighter material, as opposed to
material handling using mechanical equipment and machines. In any event, MMH's
hindrance, if not properly conducted or the products are too heavy, is the danger of
employee injury. Deros et al. (2015) state that MMH off-base movements create risk of
musculoskeletal problem (MSD) and lower back pain when performed repeatedly and
over an intended period of time.

Lean manufacturing is a term referring to continuous efforts to reduce and eliminate

waste fora smoother flow (Seth & Gupta, 2005). Lean manufacturing is a manufacturing
idea that can expand the profitability of an organization (Green, et al., 2010). The

2
principal of lean manufacturing, as expressed by Green et al. (2010) is to reduce and
eliminate waste from production processes. Ergonomics and security perspectives are
additionally considered (Green, et al., 2010). When waste, regarding overproduction,
waiting, transporting, inappropriate processing, superfluous stock which is inventory,
pointless movements, and imperfections (Hines and Rich, 1997) are reduced, it is
conceivable to accomplish an even and synchronous stream (Harrison, et al., 2014).

Operations can be classified into three categories, non-value adding (NVA), necessary
but non-value adding (NNVA) and value adding (VA) (Hines & Rich, 1997; Seth &
Gupta, Introduction 2 2005). Waste is NVA as it adds no value; however, it consumes
resources (Seth & Gupta, 2005). According to Green et al. (2010) a functional lean
manufacturing in a company can have great positive impact on the material handling,
since waste and non-value adding processes are reduced in favour of value adding
processes (Harrison, et al., 2014). Preceding enhancement (Denkena, et al., 2014), and
reducing or eliminating waste (Harrison, et al., 2014), the present state's requirement for
upgrades must be identified. The issue can be that information required is stored in
different places and systems, and it can consequently be troublesome and tedious to
gather the information required (Denkena, et al., 2014).

The focal point of manufacturing companies in adopting the lean manufacturing

demands them to find better approaches to identify and dispense with waste (Seth and
Gupta, 2005). As indicated by Harrison et al. (2014) this normally incorporates some
sort of system of mapping the process. One such method is Value Stream Mapping
(VSM) (Seth and Gupta, 2005), which maps the flow of material and data to recognize
and dispense with waste. VSM helps visualize the processes and flows, where
information, such as cycle time, manpower and work in progress and work in
advancement becomes clear for everyone (Seth and Gupta, 2005). There are different
lean tools in application, for example, Poka Yoke, standardised work, Kaizen,
workplace organisation, which backing VSM.

Value stream incorporates the parts and activities that increase the value of the item or
service produced, only for value adding processes (Hines and Rich, 1997). Utilizing
tools to identify value streams can empower manufacturing organizations identifying
and removing, or at-least reducing waste, in processes. Removing wastes results in

3
smoother streams (Hines and Rich, 1997) and expanded efficiency (Denkena, et al.,
2014)
2 COMPANY PROFILE

2.1 ABOUT THE COMPANY

Fenner (India) Limited is India's largest manufacturer of industrial and automotive V-
belts, oil seals and power transmission accessories with a large country-wide sales and
distribution network and a strong brand image, Fenner (India) Limited is undoubtedly
India's market leader. Fenner (India) Ltd has gained respect and approval from
significant OEMs for quality and customer satisfaction. The Company is a pioneer and a
market leader in both the development of new products and market research. Fenner
(India) Ltd has launched state-of - the-art products for national and foreign markets on a
regular basis. Today eight out of ten automobiles in India have at least one Fenner belt
or oil seal in it.

In addition to being the domestic market leader, Fenner (India) Ltd is also one of the
country's largest exporters of V-belts and Auto belts, exporting products to over 40
nations including North and South America, Europe, Australia and South Africa.

2.2 ORIGIN AND GROWTH

In 1929,J.H Fenner (India) Ltd was established in Calcutta asa trading company for
selling of products imported from Fenner, UK. Fenner (India) ltd,originally
incorporated as Fenner, Cockill Limited on 15thJuly 1955,was prompted by J.H Fenner
ltd., and Madura Mills company limited with A&F Harvely Ltd as their Managing
agents.The company commenced production in 1955 with flattransmission belting and
later introduced Industrial and Auto V-Belts, conveyor belting and oilseals.

The company achieved substantial expansion in the year 1973,and the same year
J.H.Fenner &co., (India) ltd., Calcutta a trading company of V-Belts and power
transmission beltswas amalgamated with the company. In
1975, the company name waschanged to Fenner (India) Ltd., and by 1979 the foreign
equality holding was reduced to 35%

In 1983, the company established material handling divisionfor carrying on the business
of designing and supplying of baggage handling and industrialmaterial handling system.

4
In 1987, the J.K.Group acquired share held by Madura coatslimited and took
management control of the company. The holding of J.K.Group and associatesis
39.87% and that of Fenner international ltd is 30.07%.As a measure of diversification
thecompany took over a 12,840 spindles cotton yarn spindles spinning unit near Karur
in Tamilnadu.The strengthened out derive through nightly focused action towards cost
reduction, rationalization of work force and productivity improvement, thecompany
turned around in 1988. In 1992 the company entered in the field of textile. In 1995,
ittook over another textile near Salem having 21,872 spindles. The capabilities were
further expanded to 36,636 spindles.

The company ventured into wind mill power generated in1994,and installed wind
electronic generators in Kanyakumari district and currently, the company is having 27
winds electrical, these wind mills have helped in supply of electricity of twocompanies,
manufacturing operations of polymer and textile business at Tamilnadu atcompetitive
cost.Currently the company is a leader in almost all its product areas.InV-Belts it has the
highest market share selling more belts. Competitors put together in the lastfew years
with a major thrust of research and development the company has been able to
launchmore& more innovative products.

2.3 OBJECTIVES
 Fenner (India) Ltd sustain by the belief that perfection can be improved with
proactiveinternal culture and by introducing new ideas.

 It has consistency delivered front line solution standard of productivity of

quality, thecompany has achieved big presence in the global market place,
ensuring reliable brandvalue.

 Improving performance in the development of product and reduce lead time.

 Achieve zero customer complaint status.

 Constantly upgrade and continuously improve operating system to enhance both

internaland external customers

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2.4 VISION
To become a Global Player in our Core Businesses and grow all business significantly

2.5 MISSION
 Transform into a “Customer First” organization
 Motivated employees committed to excellence
 Develop Strategic Partners to achieve growth
 Continued care for Society and Environment
 3X growth in 5 years with thrust on profitability (ROCE)

2.6 PRODUCTS
 Timing Belts.
 Oil Seals.
 V-Belts.
 Poly V-Belts.
 Power Flex Belts

2.7 BRANDS IN INDIA

o Power Flex
o Eco drive
o Power Train
o Pioneer
o Fenner Multi-Pull

2.8 INTERNATIONAL BRANDS

 TOP DRIVE.
 TOP DRIVE ENDURANCE PLUS.
 TOP DRIVE COG POWER.

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3 PURPOSE

The reason for this thesis is to investigate choices for material flow improvements and
handlingof material in production area. This involves an investigation of the material
flow from storage to production areas and handling of material in production area A. If
necessary for improvement of material flow, an adjustment in layout design will be
suggested. The material stream is improved by diminishing the movement and handling
of materials or lessening the distance of movement. Upgrades of production area can be
accomplished through a proficient layout. This thesis will mean to propose a productive
layout and material handling for improvement purposes.

3.1 RESEARCH QUESTIONS

The following research questions shall address the thesis purpose.

RQ1: How can the movement of material from storage to production areas be
improved?

Upon analysing the material movement, non-value added activities could be identified
and removed. An improved material stream would then be able to empower upgrades of
material handling.

RQ2: In what way can the material handling be improved?

The improvement of material stream and the manner in which the material is dealt with
might recommend a change in layout, along these lines RQ3 intends to explore this.

RQ3: Can an adjustment in the layout of the production area result in improved stream
andhandling of material?

Responding to these inquiries will discover approaches to improve the stream and
handling of materials with a proper layout of the facility.

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3.2 DELIMITATIONS
The analysis of material flow and production areas at JK FENNER will be limited to
one specific production section; production of V-Belt. Limiting to one sector of
production will allow a more in depth and comprehensive analysis.The material flow
and handling of material will only be studied during the dayshift. The analysis of
material flow and handling will be conducted on one high volume article, henceforth
called article B. Areas for improvements will be based on the VSM conducted, where
improvements are achieved through reduction of NNVA and NVA activities.

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4 THEORETICAL BACKGROUNDS

4.1 FACILITY LAYOUT

Organizations are always going for enhancements, being cost proficient and
meetingcustomers' expectations (Mathisson-Öjmertz, 1998b). Logistics operations need
to be efficient to empower an organization's competitiveness in a market with a wide
product variety and short response times (Rouwenhorst, et al., 2000). This increases the
pressure on manufacturing companies to advance their production by bringing down
expenses and expanding efficiency (Denkena, et al., 2014), where the expenses of
logistics operations is a part of the overall production costs (Rouwenhorst, et al., 2000).
The expenses are reliant on inventory, the manner in which material is monitored and
managed. Depending on the layout of the facility there will be different costs related to
manufacturing, work in progress, productivity and lead times (Drira, et al., 2007). The
productivity of material stream and handling is likewise influenced by the layout of the
facility (Aiello, et al., 2002).

A facility layout can, as indicated by Drira et al. (2007) relate to the arrangement and
location of a production group or manufacturing cell where production of goods or
services are performed. Planning a facility layout is an intricate task for two reasons; the
imperatives of thefacility and its need to help and facilitate the materials handling and
movement (Mulcahy,1999). In an manufacturing framework there can be various sorts
of layout problems, frequently related to the location of facilities, for example
machines, in a plant. Finding an appropriate location of facilities will build the
effectiveness of tasks as well as diminishing its costs (Drira, et al., 2007).

The best design of a layout should, as per Drira et al. (2007), be a mix of the most
efficient related to the collaboration of various facilities, for example, production units,
and the material handling framework. The costs of the material stream are thought to be
identified with thenumber of times materials are moved, and the distance; increased
movement leads to increased costs (Aiello, et al., 2002). Production units ought to be
put so that the accessible space is highly utilised and that the area of machines and
production groups ought to bring as low expenses of material handling and slack area as

9
conceivable so as to be improved and increment productivity (Drira, et al., 2007). The
design ought to likewise suit the material handling framework and the material flow
through and between facilities (Aiello, et al., 2002; Drira, et al., 2007), since the shape
of the facility impacts on the proficiency of the movement of material and the materials
handling framework (Mulcahy, 1999).

4.2 MATERIAL HANDLING

Material handling is concerned with moving material (Green, et al., 2010), either by
human or machine (Mulcahy, 1999). Material flow is a term describing the physical
flow of material and the way it is moved and transported (Harrison, et al.,
2014).Mulcahy(1999)arguesthatthe handling and movement ought to support a
good materialflowthroughoutthe whole facility. The design of the material handling and
flow ought to guarantee low operating costs (Mulcahy,
1999), associate economical flow of material (Mathisson-Öjmertz,1998b)with a
maximumof volume handled (Mulcahy, 1999). Green et al. (2010) describe the
importance ofa well-working flow of material in producing processes so as to
satisfy clientdemand on time and maintain client satisfaction. Therefore, the
selection of anacceptablematerial handling system is extremely vital, which can increase
productivity(Green,etal.,2010) and scale back the total manufacturing costs (Drira, et
al., 2007). “Materials handling could be a
system or combination of ways, facilities, labour, and instrumentality for
moving,packaging,and storing of materials to satisfy specific objectives”
(Öjmertz,1998,p.6).

Material handling can be expensive and is considered a non-value-adding function

(Green, et al., 2010), however needed to guarantee that material is supplied to the
suitable place (Drira, et al., 2007) at the required moment (Mathisson-Öjmertz, 1998b).
Öjmertz (1998) claims that not all materials handling practices add importance and
therefore should be lowered. Therefore, as mentioned by Mathisson-Öjmertz (1998a),
there is a need to differentiate between time spent on value-adding and non-value-
adding activities where all non-value-adding activities can be considered
waste.However, the difficulty of separating operations into value-adding and non-value-
adding is that the handling of materials is considered non-value-adding, yet a needed
activity to promote product manufacturing (Mathisson-Öjmertz, 1998a).

10
Green et al. (2010) claim that storing and moving material can be an intensive resource,
both in terms of the machinery required and in terms of manpower required. Resources
spent on handling materials can be a third of the total cost of a product and consume a
great deal of time (Öjmertz, 1998). According to Öjmertz (1998), an effective handling
of materials can be a competitive advantage with reduced expenses and less time. Due
to the generally restricted room available, the supply of components within a
manufacturing company can be challenging (Domingo, et al. 2007). Domingo et al.
(2007) claim that it is therefore not possible to store enough material close to the
activities, which improves material storage and motion. Finding an appropriate manner
of handling the material can assist to overcome this issue (Domingo, et al., 2007). An
accurate and well-designed material handling (MH) system can support activities
efficiently (Hassan, 2010), where material handling improvements are accomplished
either by enhancing the present system or by decreasing the amount of necessary steps
such as forklifts, automated handling equipment and manual handling lifting aids
(Öjmertz, 1998). Hassan (2010) claims that a malfunctioning MH system may result in
greater expenses owing to unnecessary movements with the danger of greater
manufacturing times when customers might receive products too late. Therefore, an
optimization and a well-designed MH system can decrease the cost and time spent on
moving and handling material and increase the productivity (Green, et al., 2010;
Hassan, 2010) with greater product quality (Hassan, 2010). Also, when handled less
times, the risk of material damage is reduced (Öjmertz, 1998).

When choosing appropriate MH equipment, many considerations need to be considered,

such as the complexity of designing an MH system, its purpose and functions, its
lifecycle and surrounding environment (Hassan, 2010) and its suitability with respect to
the design of the plant (Drira, et al., 2007). Hassan (2010) defines the design of an MH
scheme as a complicated task involving elements of human, equipment and software to
consider as they represent and carry out MH operations together. The number of distinct
kinds of machinery sub-systems makes the method even more complicated (Hassan,
2010). Single activities and their relationships must be understood to understand the
effective use of resources (Mathisson-Öjmertz, 1998b). Parts of a manufacturing
scheme are workstations and MH systems (Sukhota& Peters, 2012). According to
Sukhota and Peters (2012), decisions taken on the design of facilities have had an effect
on the MH between workstations. Optimizing the layout of the plant and individually
designing the MH system can lead to a production system that is far from optimized as a

11
whole (Aiello, et al., 2002). Therefore, Aiello et al. (2002) propose an integrated
strategy to designing facility layout and the MH scheme. Aspects of the MH scheme
should be regarded when designing the plant (Aiello, et al., 2002; Sukhota& Peters,
2012).

The criterion for optimizing an MH system is to reduce the costs it generates, where it is
possible to achieve low material flow costs by minimizing the number of movements
and their length (Aiello, et al. 2002). Öjmertz (1998) lists distinct approaches to
achieving an effective materials handling scheme; where an activity is essential or can
be eliminated, where activities can be combined, where the sequence of operations can
be altered, where activities can be rearranged according to location or individual, or
where the technique or equipment used can be enhanced.Aiello et al. (2002) argues that
there may be an increase in the number of movements and the length material being
moved to increase the cost of material flow. However, Öjmertz (1998) claims that the
idle time between the operations can be the most time-consuming as well as the
materials handling tasks. There are various approaches to finding the ideal facility
layout and material handling system solution (Aiello, et al., 2002; Hassan, 2010;
Sukhota& Peters, 2012). Current status must be indicated before performing an
optimization, what and where improvements are required. However, the issue may be
that the necessary information is stored in different places and systems. Therefore, it can
take time to collect all the information required (Denkena, et al., 2014).

4.3 LEAN MANUFACTURING

Lean manufacturing aims to minimize waste and non-value-added activities (Domingo,
et al. 2007). One strategy to increase the value-adding time can be to increase the
number of working hours (Chen, et al., 2010). However, Chen et al. (2010) claims that
this approach will not only increase the value-adding time, but will also increase both
the time spent on NVA and NNVA. Instead, reducing NVA and NNVA to increase the
quantity and percentage of VA would be an suitable approach (Chen, et al., 2010). A
flow that is even and synchronous can be achieved when decreasing and eliminating
waste (Muda in Japanese) (Harrison, et al., 2014). Seven distinct kinds of waste can be
recognized, such as (Domingo, et al., 2007; Harrison, et al., 2014; Hines & Rich, 1997):
 Overproduction waste— producing more than needed is one of the most critical
kinds of waste, as it can lead to poor quality, reduced productivity, higher lead
times and stocks.

12
  Waiting–Waiting takes place when time is ineffectively used; time is lost.
 Transportation— Waste during material transport when unnecessary distance or
handling has been shifted.
 Inadequate processing-occurs when more complicated procedures are used than
needed.
 Unnecessary stock— High inventory storage can hide issues that cannot be
solved or managed without decreasing inventory levels.
 Unnecessary motions–Workers could be harmed by unnecessary and excessive
movements such as bending and stretching during material handling, which
could reduce efficiency and even lead to quality issues.
 Defects — Products that do not meet client requirements are defective.

A functional lean manufacturing in a company has a beneficial effect on material

handling, according to Green et al. (2010). In lean manufacturing, processes for adding
waste and non-value are decreased in favor of processes for adding value (Harrison, et
al., 2014). Work structure is redesigned; time spent on NVA and NNVA is spent on VA
instead (Chen, et al., 2010). Green et al. (2010) claim that there is no particular material
handling methodology for lean manufacturing. However, when enhancing material
handling, they raise these significant questions that need to be considered:
 What does the solution need to provide?
 Which waste should be decreased?
 How will it affect the process?
 Which metrics to assess the outcomes should be used? (Green and others, 2010,
p. 2977)

They need to adapt, align and execute various ideas and anchor them in the company to
make companies lean (Seth & Gupta, 2005). Harrison et al. (2014) define the process of
adapting the lean idea to examine the process in the first phase. When examined, the
goal is to define the quantity and type of waste in the system and to identify the root
causes of the occurrence of waste.The final phase is to develop and execute waste
elimination alternatives, and this method generally involves some process mapping
method (Harrison, et al., 2014). A appropriate tool for waste identification is Value
Stream Mapping (VSM) (Domingo, et al., 2007). Poka Yoke, standardized work,
Kaizen and the organisation of the workplace are other lean tools (Seth & Gupta, 2005).

13
4.4 VALUE STREAM MAPPING (VSM)
A value stream involves activities that contribute value to the product or service that a
customer demands (Chen, et al., 2010; Hines & Rich, 1997). Activities can be carried
out in a series and in parallel in a value stream (Martin &Osterling, 2014). Material as
well as information flow form part of a value stream (Chen, et al., 2010; Martin
&Osterling, 2014).Hines and Rich (1997) state the importance in a method to identify
waste and the value stream to reduce it, if not at least remove it. Waste disposal can be
viewed as a competitive advantage.Waste reduction produces smooth activities, which
can assist to detect more waste in order to make the processes smoother (Hines & Rich,
1997). However, the scope must be recognized before analyzing a value stream; where
the value stream starts and finishes (Martin &Osterling, 2014). Value Stream Mapping
(VSM) is an appropriate tool for lean waste identification (Domingo, et al., 2007).

Flowcharting of material flow, steps and operations engaged in a process are aspects of
VSM that can identify non-value-adding elements (Ramesh, et al., 2008). VSM is used
with the perfect "map" of material and information flow to map the present and future
state (Chen, et al., 2010). Three key elements of a value stream map are information
flow, work flow and a time line (Martin &Osterling, 2014). Ramesh et al. (2008) state
that VSM's objectives are to define, disclose and decrease waste in a system.Activities
that do not add any value to the final product are regarded waste and therefore should be
lowered (Ramesh, et al., 2008). The next step is to discover alternatives to decrease
them after defining NVA operations (Chen, et al., 2010). VSM is a tool used for
communication, change management and strategic planning (Ramesh, et al., 2008;
Rother & Shook, 1999). It can assist companies identify waste, why and where it
happens (Ramesh, et al., 2008) and visualize job and flow systems (Martin &Osterling,
2014). Martin and Osterling (2014) claim that VSM is more than just a tool because it
provides a holistic perspective of the work flow through whole systems. To prevent sub-
optimizations with higher expenses or reduced profit for other sub-processes, the
holistic perspective is critical (Martin &Osterling, 2014).

Hines and Rich (1997) are presenting seven VSM tools, the various tools are described
as supply chain VSM tools. However, one company can use the tool "process activity
mapping" where it is helpful for mapping transport and unnecessary movement. Process
activity mapping' is an appropriate technique for identifying workplace waste and
inconsistencies, consisting of five steps (Hines & Rich, 1997):

14
1. The research of process flow
2. Identification.
3. A consideration as to whether a more effective sequence can rearrange the process;
4. A better flow pattern consideration, involving distinct flow layout or transport
routing; and
5. A consideration as to whether all that is accomplished at each point is essential and
what would occur if superfluous tasks were to be removed.

There are three aspects to be considered when designing the future state (Martin
&Osterling, 2014). Martin and Osterling (2014) state the first element to determine
what job to do and then to remove NVA operations and steps. Making work flow and
handling the job for ongoing changes as the last element afterwards (Martin &Osterling,
2014).

15
5 REFERENCES AND LITERATURE REVIEW

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