A Financial Analysis To Identify Constraint Tools And Its Operational Impacts

Basic downtime analysis refers to the effort of understanding overall downtime rates which is related to production issues leading to the efficiency improvement of the whole production. However, in a large production system, there are a lot of different types of machines and processes with their ind...

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Main Author:	Lim, Poh Siong
Format:	Thesis
Language:	English English
Published:	2016
Subjects:	T Technology (General) TS Manufactures
Online Access:	http://eprints.utem.edu.my/id/eprint/20783/1/A%20Financial%20Analysis%20To%20Identify%20Constraint%20Tools%20And%20Its%20Operational%20Impacts%20-%20Lim%20Poh%20Siong%20-%2024%20Pages.pdf http://eprints.utem.edu.my/id/eprint/20783/2/A%20Financial%20Analysis%20To%20Identify%20Constraint%20Tools%20And%20Its%20Operational%20Impacts%20-%20Lim%20Poh%20Siong.pdf
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id	my-utem-ep.20783
record_format	uketd_dc
institution	Universiti Teknikal Malaysia Melaka
collection	UTeM Repository
language	English English
topic	T Technology (General) TS Manufactures
spellingShingle	T Technology (General) TS Manufactures Lim, Poh Siong A Financial Analysis To Identify Constraint Tools And Its Operational Impacts
description	Basic downtime analysis refers to the effort of understanding overall downtime rates which is related to production issues leading to the efficiency improvement of the whole production. However, in a large production system, there are a lot of different types of machines and processes with their individual capacities despite being linear in manner. The specification is referred as the parameters of the downtime cost related factors which have different impact on the downtime analysis. As a result, common study is unable to justify which process or machine requires focus and priority in any downtime improvement program. The justification needs to be supported with a financial analysis which requires the costing method on the downtime issues since the improvement program requires possible financial budget and the potential cost saving activities should be well planned and managed. The main objectives of this project are to link up actual downtime issues to the cost followed by a further analysis on the impact of the downtime cost. The project will be a future tool for the top management to make decision and changes in their operations to move their companies towards better practices and most importantly reducing the operational costs. A period of ten consecutive weeks of downtime monitoring has been conducted in a chosen company by selecting two of its bottleneck processes. During this study, two major downtime cost categories from each process is calculated by using the introduced costing method and an overall potential cost saving improvement program is established. Findings from this study will provide linkages of downtime to financial losses followed by a detailed Pareto breakdown of key drivers. Therefore, this clear determination enables necessary recommendations of downtime improvement effort to be provided within the factory.
format	Thesis
qualification_name	Master of Philosophy (M.Phil.)
qualification_level	Master's degree
author	Lim, Poh Siong
author_facet	Lim, Poh Siong
author_sort	Lim, Poh Siong
title	A Financial Analysis To Identify Constraint Tools And Its Operational Impacts
title_short	A Financial Analysis To Identify Constraint Tools And Its Operational Impacts
title_full	A Financial Analysis To Identify Constraint Tools And Its Operational Impacts
title_fullStr	A Financial Analysis To Identify Constraint Tools And Its Operational Impacts
title_full_unstemmed	A Financial Analysis To Identify Constraint Tools And Its Operational Impacts
title_sort	financial analysis to identify constraint tools and its operational impacts
granting_institution	Universiti Teknikal Malaysia Melaka
granting_department	Faculty of Manufacturing Engineering
publishDate	2016
url	http://eprints.utem.edu.my/id/eprint/20783/1/A%20Financial%20Analysis%20To%20Identify%20Constraint%20Tools%20And%20Its%20Operational%20Impacts%20-%20Lim%20Poh%20Siong%20-%2024%20Pages.pdf http://eprints.utem.edu.my/id/eprint/20783/2/A%20Financial%20Analysis%20To%20Identify%20Constraint%20Tools%20And%20Its%20Operational%20Impacts%20-%20Lim%20Poh%20Siong.pdf
_version_	1747834005327183872
spelling	my-utem-ep.207832021-10-08T17:08:59Z A Financial Analysis To Identify Constraint Tools And Its Operational Impacts 2016 Lim, Poh Siong T Technology (General) TS Manufactures Basic downtime analysis refers to the effort of understanding overall downtime rates which is related to production issues leading to the efficiency improvement of the whole production. However, in a large production system, there are a lot of different types of machines and processes with their individual capacities despite being linear in manner. The specification is referred as the parameters of the downtime cost related factors which have different impact on the downtime analysis. As a result, common study is unable to justify which process or machine requires focus and priority in any downtime improvement program. The justification needs to be supported with a financial analysis which requires the costing method on the downtime issues since the improvement program requires possible financial budget and the potential cost saving activities should be well planned and managed. The main objectives of this project are to link up actual downtime issues to the cost followed by a further analysis on the impact of the downtime cost. The project will be a future tool for the top management to make decision and changes in their operations to move their companies towards better practices and most importantly reducing the operational costs. A period of ten consecutive weeks of downtime monitoring has been conducted in a chosen company by selecting two of its bottleneck processes. During this study, two major downtime cost categories from each process is calculated by using the introduced costing method and an overall potential cost saving improvement program is established. Findings from this study will provide linkages of downtime to financial losses followed by a detailed Pareto breakdown of key drivers. Therefore, this clear determination enables necessary recommendations of downtime improvement effort to be provided within the factory. 2016 Thesis http://eprints.utem.edu.my/id/eprint/20783/ http://eprints.utem.edu.my/id/eprint/20783/1/A%20Financial%20Analysis%20To%20Identify%20Constraint%20Tools%20And%20Its%20Operational%20Impacts%20-%20Lim%20Poh%20Siong%20-%2024%20Pages.pdf text en public http://eprints.utem.edu.my/id/eprint/20783/2/A%20Financial%20Analysis%20To%20Identify%20Constraint%20Tools%20And%20Its%20Operational%20Impacts%20-%20Lim%20Poh%20Siong.pdf text en validuser https://plh.utem.edu.my/cgi-bin/koha/opac-detail.pl?biblionumber=104907 mphil masters Universiti Teknikal Malaysia Melaka Faculty of Manufacturing Engineering 1. Alsyouf, I., 2007. The Role of Maintenance in Improving Companies’ Productivity and Profitability. International Journal of Production Economics, 105, pp. 70–78. 2. Angell, L. C., and Chandra, M. J., 2001. Performance Implications of Investments in Continuous Quality Improvement. International Journal of Operations & Production Management, 21 (1/2), pp. 108-125. 3. Chan, S.P., 2008. Fundamentals of Economics Engineering, 3rd ed., Pearson Education, Inc.Publishing 4. Chand, G., and Shirvani, B, 2000. Implementation of TPM in Cellular Manufacture. Journal of Materials Processing Technology, 103, pp. 149-154. 5. International Standards Office 2007. TMB Cable Design Standard. US: ISO 6. De Groote, P., 1995. Maintenance Performance Analysis: A Practical Approach. Journal of Quality in Maintenance Engineering, 1 (2), pp. 4-24. 7. Eti, M.C., Ogaji, S.O.T., and Probert, S.D., 2006. Reducing the Cost of Preventive Maintenance (PM) through Adopting a Proactive Reliability-focused Culture. Applied Energy, 83, pp. 1235–1248. 8. Fitchett, D., 2003. The True Cost of Downtime, Second Edition, Fedd forward Publications 9. Fitchett, D., and Sondalini, M., 2006. True Downtime Cost Analysis, Second Edition, Fedd forward Publications 10. Hamoud, G., Toneguzzo, J., and Yung, C., 2002. Feasibility Study of Maintenance Cost Reduction in Redundant Customer Delivery Systems. In: Institute of Electrical and Electronics Engineers, Proceedings of the 2002 IEEE Power Engineering Society Summer Meeting, Chicago, U.S., 21 – 25 July 2002. New Jersey. 11. Info Management Direct, 2015. How Much Does Downtime Really Cost? [online] Available at: http://www.information-management.com/infodirect/2009_133/downtime_cost-10015855-1.html [Accessed on November 2015]. 12. Löfsten, H., 2000. Measuring Maintenance Performance in Search for a Maintenance Productivity Index. International Journal of Production Economics, 63, pp. 47-58. 13. Mirghani, M. A., 2001. A Framework for Costing Planned Maintenance. Journal of Quality in Maintenance Engineering, 7 (3), pp. 170-182. 14. Moore, W.J., and Starr, A.G., 2006. An Intelligent Maintenance System for Continuous Cost-based Prioritisation of Maintenance Activities. Computers in Industry, 57 (6), pp. 595–606. 15. Nepal, M.P., and Park, M., 2004. Downtime Model Development for Construction Equipment Management. Engineering, Construction and Architectural Management, 11 (3), pp. 199–210. 16. Pascuala, R., Meruane, V., and Rey, P.A., 2008. On the Effect of Downtime Costs and Budget Constraint on Preventive and Replacement Policies. Reliability Engineering and System Safety, 93, pp.144–151. 17. Sachdeva, A., Kumar, D., and Kumar, P., 2008. Planning and Optimizing the Maintenance of Paper Production Systems in a Paper Plant. Computers & Industrial Engineering, 5 (4), pp. 817-829. 18. Sentech Inc, 2006. Distributed Energy Program Report: 2006 Update of Business Downtime Costs. Sentech Inc., Washington D.C.. 19. 2007 The Hidden Cost of Downtime a Strategy for Improving Return on Assets. [online] Available at: http://www.mt-online.com/component/content/article/133-july2001/693--the-hidden-cost-of-downtime-a-strategy-for-improving-return-on-assets.html?directory=90 [Accessed on November 2015] 20. 2003 The True Cost of Downtime. [online] Available at: http://www.nasi.com/downtime_cost.php [Accessed on November 2015] 21. Sullivan, A., and Sheffrin, S.M., 2003. Economics: Principles in Action, New Jersey: Pearson Prentice Hall. 22. Superville, C. R., and Gupta, S., 2001. Issues in Modeling, Monitoring and Managing Quality Cost. The TQM Magazine, 13 (6), pp. 419-423. 23. Udo, G. J., 1996. Advanced Manufacturing Technologies Determinants of Implementation Success. International Journal of Operations & Production Management, 16 (12), pp. 6-26. 24. Vision Solutions, 2007. Accessing downtime costs and losses: A White Paper. [online] Available at: www.visionsolutions.com [Accessed on November 2015].

A Financial Analysis To Identify Constraint Tools And Its Operational Impacts

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