Assembly Line Balancing and Loss Management

Chapter 1
Introduction
1.1 About the company
Incorporated and promoted in 1992 by Mr Kartar Singh, the Amber Group is among other
things, one of the largest original equipment manufacturer of white goods in India. One factor
that has led us this far is our relentless focus on quality. At the Amber Group we follow strict
quality processes and we are an ISO 9001 - 2008 certified company. Under the aegis of the
Amber Group there are two distinct entities: Amber Enterprises India Pvt. Ltd. and Amber
Aviation India Pvt. Ltd. . Amber Industries is a conglomerate of 9 manufacturing units that
are involved in producing original equipment for some of the biggest brands in India while
Amber Aviation is engaged in aircraft charters and training of commercial pilots.
Some of top white good brands stake their reputations on our products every day and have
done so for years. What makes giants like L.G, Videocon, Godrej, Whirpool, Blue Star,
Philips and Voltas trust the insides of their products to us? It can be summed up in one word trust. Our customers trust us. We manufacture and customize original equipment as per
specifications and as per schedule. Customer service is not a word we use lightly.
"Amber" has 9 manufacturing units spread out over diverse locations like Rajpura, Dehradun,
Kala Amb, Greater& Pune.
1.1.1 Why are we one of the most cost-effective white good OEMs in India?

We are based at strategic locations and well connected to the rest of the country.
Our in-house products, tool development facility and an active R&D department
ensure quality and innovation thereby reducing costs.
Our backward integration across a wide range of components along with economies
of scale keep our costs low.

1.1.2 Partial Product List:

Split & Window Air Conditioners for commercial and residential use.
Package Air Conditioners for Indian Railways and commercial use.
Heat Exchangers.
Multi Flow Condensers.
Home appliances like Washing Machines, Refrigerators & Microwaves.
Luminaries for commercial use.
Plastic Extrusion Sheets.
Vacuum Forming Components.
Injection Molding Components.
Sheet Metal Components.
Auto Parts.

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1.2 Vision, Mission & Philosophy

1.2.1 Vision :

To be the first choice of customers

Add value to their Business
Discipline & strong management principles

1.2.2 Mission :

To be No. 1 OEM & parts manufacturing company

Excellent services to our customers
Create growth for all associated with our organization

1.2.3 Philosophy :

Smart working
Innovation
Happiness for all

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Assembly Line Balancing and Loss Management

Chapter 2
Literature Survey
2.1 Review of loss management by Robert Stern (MBA), Jos Carlos Arias
(PhD, DBA)
Project development, especially in the software related field, due to its complex nature, could
often encounter many unanticipated problems, resulting in projects falling behind on
deadlines, exceeding budgets and result in sub-standard products. Although these problems
cannot be totally eliminated, they can however be controlled by applying Risk Management
methods. This can help to deal with problems before they occur. Organisations who
implement risk management procedures and techniques will have greater control over the
overall management of the project. By analysing five of the most commonly used methods of
risk management; conclusions will be drawn regarding the effectiveness of each method. The
origin of each method will be established, along with the typical areas of application, the
framework of the methods, techniques used by each and the advantages and disadvantages of
each of the methods. Each method will be summarised, then an overall comparison will be
drawn. Suitable references will be included to highlight features, along with diagrams and
charts to illustrate differences in each approach

2.2 Assembly Line Balancing Problem of Sewing Lines in Garment

Industry by James C. Chen ,Department of Industrial Engineering and
Engineering Management ,National Tsing Hua University Hsinchu,
Taiwan, R.O.C
Garment manufacturing is a traditional industry with global competition. The most critical
manufacturing process is sewing, as it generally involves a great number of operations. A
balanced sewing line can reduce labor requirement, increase production efficiency, and
reduce production cycle time. Assembly line balancing problem (ALBP) is known as an NPhard problem. Thus, heuristic methodology could be a better way to plan the sewing lines
within a reasonable time.

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Assembly Line Balancing and Loss Management

Chapter 3
Air Conditioning
3.1 Air Condition Working
Air conditioners and refrigerators work the same way. Instead of cooling just the small,
insulated space inside of a refrigerator, an air conditioner cools a room, a whole house, or an
entire business. Air conditioners use chemicals that easily convert from a gas to a liquid and
back again. This chemical is used to transfer heat from the air inside of a home to the outside
air. The machine has three main parts. They are a compressor, a condenser and an evaporator.
The compressor and condenser are usually located on the outside air portion of the air
conditioner. The evaporator is located on the inside the house, sometimes as part of a furnace.
That's the part that heats your house. The working fluid arrives at the compressor as a cool,
low-pressure gas. The compressor squeezes the fluid. This packs the molecule of the fluid
closer together. The closer the molecules are together, the higher its energy and its
temperature. The working fluid leaves the compressor as a hot, high pressure gas and flows
into the condenser. If you looked at the air conditioner part outside a house, look for the part
that has metal fins all around. The fins act just like a radiator in a car and help the heat go
away, or dissipate, more quickly. When the working fluid leaves the condenser, its
temperature is much cooler and it has changed from a gas to a liquid under high pressure. The
liquid goes into the evaporator through a very tiny, narrow hole.
On the other side, the liquid's pressure drops. When it does it begins to
evaporate into a gas. As the liquid changes to gas and evaporates, it extracts heat from the air
around it. The heat in the air is needed to separate the molecules of the fluid from a liquid to a
gas. The evaporator also has metal fins to help in exchange the thermal energy with the
surrounding air. By the time the working fluid leaves the evaporator, it is a cool, low pressure
gas. It then returns to the compressor to begin its trip all over again. Connected to the
evaporator is a fan that circulates the air inside the house to blow across the evaporator fins.
Hot air is lighter than cold air, so the hot air in the room rises to the top of a room. There is a
vent there where air is sucked into the air conditioner and goes down ducts. The hot air is
used to cool the gas in the evaporator. As the heat is removed from the air, the air is cooled. It
is then blown into the house through other ducts usually at the floor level. This continues
over and over and over until the room reaches the temperature you want the room cooled to.
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Assembly Line Balancing and Loss Management

The thermostat senses that the temperature has reached the right setting and turns off the air
conditioner. As the room warms up, the thermostat turns the air conditioner back on until the
room reaches the temperature.

Fig 3.1: AC system

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Assembly Line Balancing and Loss Management

Chapter 4
ASSEMBLY LINE BALANCING
4.1 Assembly line
An assembly line is a manufacturing process in which interchangeable parts are added to a
product in a sequential manner to create an end product. In most cases, a manufacturing
assembly line is a semi-automated system through which a product moves. At each station
along the line some part of the production process takes place. The workers and machinery
used to produce the item are stationary along the line and the product moves through the
cycle, from start to finish.
Assembly line methods were originally introduced to increase factory productivity and
efficiency. Advances in assembly line methods are made regularly as new and more efficient
ways of achieving the goal of increased throughput (the number of products produced in a
given period of time) are found. While assembly line methods apply primarily to
manufacturing processes, business experts have also been known to apply these principles to
other areas of business, from product development to management.

Fig 4.1: Assembly Line

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Assembly Line Balancing and Loss Management

4.2 Assembly line balancing

4.2.1 What is assembly-line balancing?

Set up a workstation within an assembly line in order to meet the required production
rate and to achieve a minimum amount of idle time.

Line balancing is the procedure in which tasks along assigning each task the assembly
line are assigned to work station so each has approximately same amount of work.

4.2.2 Unbalance Line and Its effect

High work load in some stages (Overburden)

Maximizes wastes (over-processing, inventory, waiting, rework, transportation,

motion)

High variation in output

Restrict one piece flow

Maximizes Idle time

Poor efficiency

4.2.3 Balanced Line and its effect

Promotes one piece flow

Avoids excessive work load in some stages (overburden)
Minimizes wastes (over-processing, inventory, waiting, rework, transportation,
motion)
Reduces variation
Increased Efficiency
Minimizes Idle time

4.2.4 How Can Assembly-Line Balancing Help Organization?

Increased efficiency

Increased productivity

Potential increase in profits and decrease in costs

4.2.5 Steps in Balancing an Assembly Line

List the sequential relationships among tasks and then draw a precedence diagram.

Calculate the required workstation cycle time.

Calculate the theoretical minimum number of workstations.

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Assembly Line Balancing and Loss Management

Choose a primary rule that will determine how tasks are to be assigned to
workstations.

Beginning with the first workstation, assign each task, one at a time, until the sum of
the task times is equal to the workstation cycle time or until no other tasks can be
assigned due to sequence or time restrictions.

Repeat step 5 for the remaining workstations until all the tasks have been assigned to
a workstation.

Evaluate the efficiency of the line balance.

Rebalance if necessary.

Fig 4.2: Assembly line balancing steps

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Assembly Line Balancing and Loss Management

Chapter 3
Loss Management
3.1 Loss Management
A business practice that seeks to detect, identify, investigate and prevent events that causes a
drop in value of any of an organization's revenues, assets and services. Loss-management
improvements may involve changes in a business's operating policies and business model in
order to limit instances of accidental and/or intentional loss.
For easy understanding, it is divided into three main categories
1. To explain the terms and causes of loss management
2. Line Balancing, Time & Motion Study
3. Production Indices

3.2 Aim of loss management

(1) LOWER THE COST (By eliminating useless work; simplifying necessary work;
proper utilization of materials; reducing scrap)
(2) IMPROVE THE PRODUCTIVITY (By utilizing machines; tools; equipment and
facilities to capacity; reducing bottlenecks and developing a smooth flow of materials
and communications)
(3) SAVE EFFORT (By eliminating or reducing fatiguing and waste motions; long
transports and involved paperwork through easier methods and mechanization.)
(4) IMPROVE QUALITY (By improving tooling and inspection techniques.)
(5) REDUCE ACCIDENTS (By eliminating accident hazards; reviewing working
conditions and encouraging plant and job cleanliness.)

PROFIT = SELLING PRICE - COST

3.3 TYPES OF LOSSES

Mainly, there are seven losses

Transportation loss(movement )

Inventory loss( pile up a lot )

Motion loss (movement )

Waiting loss (wait for work )

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Assembly Line Balancing and Loss Management

Over processing loss (unnecessary work )

Over production loss (produce excessively )

Defect loss (work defect )

3.4 Definition of losses

3.4.1 Transportation loss
Transportation is needed to work. But transportation itself does not produce the added
value so it is regarded as loss.

Unnecessary transportation

Transportation and maintenance of things

Transportation flow

Long distance problem

Loading and unloading

Multiple handling

3.4.2 Inventory loss

There is an inventory in production plant; they are valuable asset but decrease the
flexibility of fund. Thus it is the loss.

The status that material, component, assembly are stuck; it includes a warehouse and
rework between the processes.

Long delivery time.

Space loss.

Inspection loss

Increase of operation fund

3.4.3 Motion loss

Waste due to motion or operating (activity that does not produce the added value)

Unnecessary operating

Delay operating searching

Picking component or tools from back side

Bending awkward posture

Excess handling

Large reach / walk distance

3.4.4 Waiting loss

It happens in various processes. The staffs wait for work to begin.
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Assembly Line Balancing and Loss Management

Improper work load

Gap between skilled and unskilled workers

Sudden quality accident

Improper layout

3.4.5 Over processing

This is caused by surplus design or the problem of process method.

Unnecessary processes regarded as a necessary one.

Unnecessary work

Increase of man power , error

Decrease of work

Increase of defect

3.4.6 Over production

Produce too many components that are not used immediately.

Produce unnecessary things at unnecessary time

Increase of inventory and error defect

Disturbing the plan

Surplus manpower

3.4.7 Defect loss

Not doing the right at the first time, causing rework or scrap. The product that does not
confirm the customer needs. Include the defects, the cost of inspecting for the defects,
responding to customer complaints and making repairs.

Demotivation of operators

Continuous loss (components, disassembly repairs)

Defected material

Defected process inspection

No standard work

No sequence inspection

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Assembly Line Balancing and Loss Management

3.5 How to Decrease Loss (5 Why)

There are ways to improve loss management and substantially decrease the losses.
3.5.1-why analysis
3.4.1.1 Purpose

Creating a culture of Problem solving

Focus toward eliminating root cause of problems

3.5.1.2 Focus Areas

Daily PQ Analysis

Daily Shop floor Q analysis

Defect Analysis

Idle Time Analysis

Shortage analysis

Breakdown related issues

5S

Safety

3.5.1.3 Impact

Attaining Zero Defect/ Breakdown thru Fool-proofing

Overall Improvement in Productivity & Quality

3.5.2 5-why campaign

3.5.2.1 Most Common mistakes:

Jumping from problem to solution without clear understanding & analysis

Not clearly understanding the needs of the organization or work area

How do you know it is the biggest problem?

Do you know that solving it will benefit the organization?

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Assembly Line Balancing and Loss Management

Confusion between the true problem, symptoms of the problem, and causes of
the problem

3.5.3 Principles of 5 Why Analysis:

A problem well defined, is a problem half solved.

Further breakdown is not possible (last Why)
Root Causes are solvable by you or the team
If the root causes are corrected the problem will be solved
The solutions are clear to everyone
Proper Analysis of probable cause

Fig 3.1: Example of 5 why

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Assembly Line Balancing and Loss Management

3.6 Way of finding the losses (Using 5 why)

Type

Subject

Question

What

What are you doing?

Why is it needed?

Why do you need to work

that?
Why do you have to work
so?
Why do you use this
machine?

Purpose

Why

Place

Where

Time

When

People

Who

Why do they do this?

Can anybody do that?

Is it necessary?
Is this the best way to
work?

How

Remove
unnecessary
things

Why do you have to work

here?
Can you work another
place?
Why do you have to work
this now?
Can you do it before
preceding the line?

Way

Method

Change
Combination or
procedure

Minimize
the work

Table 3.1: Way of finding losses

3.7 Improvement:
3.7.1Eliminate

Reduce the number of motions

Elimination, transfer, transportation or rotation of elemental operations

3.7.2 Combine

Perform the motions at the same time

Combination of elemental operations, processes and handling of parts

3.7.3 Rearrange
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Assembly Line Balancing and Loss Management

Make the distance between motions short

Improvement of L/B by transfer of elemental operations or processes

3.7.4 Simplify

Make the motion simple

Simplification of piling up of parts and improvement of fixtures and tools

3.7.5 Use of Human Body

The Operator should feel comfortable.

The two hands should begin end their motions at the same time.
The two hands should not be idle at the same time except during rest periods.
Motions of the arms should be made in opposite and symmetrical directions
and should be made simultaneously.
Hand motions should be confined to the lowest classification with which it is
possible to perform the work satisfactorily
Momentum should be employed to assist the worker whenever possible, and it
should be reduced to a minimum if it must be overcome by muscular effort.
Smooth continuous motions of the hands are preferable to zigzag motions or
straight-line motions involving sudden and sharp changes in direction.
Ballistic movements are faster, easier, and more accurate than restricted
(fixation) or "controlled" movements.
Rhythm assists smooth and automatic performance. Arrange the work to permit
an easy and natural rhythm.

3.8 Drawback of 5 why

Fig 3.2: Drawbacks of 5 Why

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Assembly Line Balancing and Loss Management

Chapter 4
Conclusion
As per study and knowledge gather we can conclude that for any assembly to thrive line
balancing study is must to strike proper balance between demand and supply, and to hit
the target set. Also the study of Loss Management is required to decrease the losses and
to overcome the drawbacks in production.

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Assembly Line Balancing and Loss Management

Chapter 5
Glossary
Line Balancing: An assembly line is a manufacturing process in which interchangeable parts
are added to a product in a sequential manner to create an end product. In most cases, a
manufacturing assembly line is a semi-automated system through which a product moves. At
each station along the line some part of the production process takes place. The workers and
machinery used to produce the item are stationary along the line and the product moves
through the cycle, from start to finish.

Loss Management: A business practice that seeks to detect, identify, investigate and prevent
events that causes a drop in value of any of an organization's revenues, assets and services.
Loss-management improvements may involve changes in a business's operating policies and
business model in order to limit instances of accidental and/or intentional loss.

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Assembly Line Balancing and Loss Management

Chapter 6
References
1. Assembly Line Balancing and Sequencing
By Mohammad Kamal Uddin and Jose Luis Martinez Lastra
2. Balancing and sequencing of assembly lines
By Armin Scholl
3. Amber Work Manual
4. Loss Management by Whirlpool
5. www.wikipedia.com
6. www.ambergroup.com

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