Increasing efficiency of the electrical appliance production process by line balancing method

Abstract

This research aims to increasing efficiency in production and eliminate the problem of insufficient production capacity with respect to customer demand for electrical appliance factory by applying the line balancing method. Thus, the study then developed two problem-solving approaches. The first approach is a method by which a firm applies the line balancing concept and ECRS technique (Eliminate, Combine, Rearrange and Simplify). On the contrary, the second approach is required an investment in testing machine with value of 1,000,000 baht in order to support sufficient production capacity to meet customer demand. Also, ECRS method is used to accomplish this process. Based on the results, the first approach provided the production line efficiency improvement representing of 82.59% and reduced the labor cost of 277,220 baht per year. However, the loss of commercial opportunity has remained the same of 6,336,000 baht per year. Accordingly, the second approach demonstrated of 92.11% of the production line efficiency improvement and the labor cost reduction valued of 277,220 baht per year. As we expected, the second approach satisfied production efficiency by eliminating the loss of commercial opportunity with value of 6,336,000 baht per year delivering a return of investment within two months.