MFCA Case Example

- Textile-

Project Approach and Objective

• MFCA Team Leader - Procurement department manager

• Data Collection and Shop Floor Training

 Knitting department
 Dyeing department
 Garment department
 Utility department

• Development of Style Textile as First Demo Company in Pakistan

• Improvement of production based on input-output thinking

• Case Studies on MFCA from Japan for Awareness

*Information for the case example is adjusted and changed for the purpose of the training.

2
 Company’s Profile

• Company name: Company A

• Industry: Carpet manufacturing

• Capital: 65 million dollars

• Annual sales of 572 million dollars

• Number of on-site personnel: 150

• Key Product: carpets and other textile related

products

*Information for the case example is adjusted and changed for the purpose of the training.

Determination of Necessary Expertise

- Establishment of MFCA Team -

Procurement
department
manager
MFCA advisor (In-house)
(External)
(Hiroshi Tachikawa)

Knitting Dyeing Garment Utility Costing Engineering

department department department department Department Department
(In-house) (In-house) (In-house) (In-house) (In-house) (In-house)

*Information for the case example is adjusted and changed for the purpose of training.

4
 Selection of Target Products

1. Prepare list of all 2. Grouping

products productsby model

As a result of selection process, Company A

decides to select whole production process

*Information for the case example is adjusted and changed for the purpose of the training.

Manufacturing process

INPUT

1. Yarn 3.Dyeing 4.Finishing 5.Dyeing 6.Cutting

2.Knitting
procurement

7.Embellish 10.Packaging 11.Internal

8.Stitching 9.Finishing
ment Audit

OUTPUT
*Information for the case example is adjusted and changed for the purpose of training.

6
 Material Flow Model - 1
Input

• Tape
• Bar Codes
• M/C Spare parts • Softener
• Electricity • Finished • Gloves
• Knitting Oil • Chemical
• Dyes Fabric • Snickering Roll
• Baby Cones • Needles • Electricity
• Chemical • Cutters/Knife
• Yarn • Air • Steam
• Steam • Fabric
• Sinkers • Water
• Water
• mask • Air
• Air
• Ear plug
• Yarn

1.Yarn 5.Dyeing
Procurement 2.Knitting 3.Dyeing 4.Finishing 6.Cutting
QC

• Yarn waste • Ecru Fabric • Ok Cut

• Processed • Defective • Fabric
• Knitting Oil
• Needles
Water fabric Panels
• Sinkers • Chemicals • Sample
• Masks • Dyes
• Rejected Fabric • Rejected fabric
• Knitting
Wastage

Output (material loss)

7
*Information for the case example is adjusted and changed for the purpose of training.

Material Flow Model - 2

Input

• Adhesive • Hangers
• Bar Code Sheet
• Screen Mash • Sealer
• Lead Pencils
• Positive Films • Measurement • Cartons Tape
• Sewing Threads
• Cut Panels Tape • Poly Bags
• Sewing Accessories • Lab Testing Reports
• Pattern Sheets • Poly Bag • Cartons
• Spare Parts • Packing List
• Frames • Cartons • Finished
• Induction Bundles • Measurement Tape
• Panels • Stitched Garment
• Check Stickers • Packed Garment
• Cotton Tape Garments • Lab Testing
• Machines
• Needles Reports
• Oil
• Embroidery Thread • Measurement
• Needles
Tape

8.Stitching 9.Finishing 11.Internal

7.Embalishment 10.Packaging
Audit

• Ok Garment • Finished Garment

• EMB Panels • Finished Garment
• Reworked • Rework Garments
• Rejected Panel • Non • Ok Garment For
Garments due to Stain
Conformance External Audit
• Stitching Fabric
Garment Fault

Output (material loss)

*Information for the case example is adjusted and changed for the purpose of the training.

8
 Allocation of Energy and System Costs

Cost Elements Allocation Base Allocation Type

Energy （electricity） Consumption B

Energy （fuel） Consumption B

Labor （regular employee） Man-hour A

Labor (part-timer) Man-hour A

Depreciation Operating time B
(straight-line method)
Maintenance Expenditure C

Tools Expenditure C

A ： Allocation on base of real data

B ： Allocation on base of monthly data (correctly as possible)
C ： Assumed Calculation based on monthly data
*Information for the case example is adjusted and changed for the purpose of the training.

Findings from MFCA Analysis

(Management Level)

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 Overall Management Activity

1. ERP: Materials movement (stock, issued) vs detailed material use

(especially volume of usage at each fulfilling activities)

2. Clear definition of responsibility and monitoring of actual waste amount

3. Standardization – a number of material use (especially other than main raw

material) depends on experience or not clearly defined.

*Information for the case example is adjusted and changed for the purpose of training.

11

Findings from MFCA Analysis

(Department-by-Department Level)

12
 QC1: Yarn procurement
QC2: Knitting

1. Packing material – 1.5 kg of auxiliary materials are assumed to be generated – this

was not include for analysis of reduction

2. Rewinding process - no detailed costing for re-winding process was conducted at the
site.

3. Handling of left-over yarn - Understanding of yarn size and machine capacity should
be further evaluated for further reduction/reuse of the yarn material.

4. Consideration of replacement of paper-based yarn-corn (core) to plastics

5. Oil re-filling operation - no record for actual amount of refilled chemicals.

*Information for the case example is adjusted and changed for the purpose of training.

13

Material Losses and their Countermeasures

No. Loss Category Type of Material Loss Countermeasure Expected reduction in material loss (kg)

Understand volume of packing

material related material losses.
1 Unknown Packing material 10% of material loss
Review handing-practice of waste
packing materials

Rewinding process - no
detailed costing for re- Consider options to reduce
2 Theoretical 5% of material loss
winding process was amount of the yarn to be recycled.
conducted at the site

Understanding of yarn size and

machine capacity should be
3 Normal Left-over yarn further evaluated for further 40% of material loss
reduction/reuse of the yarn
material.

Consideration of replacement of
4 Theoretical Paper yarn paper-based yarn-corn (core) to 10% of material loss
plastics

Abnormal/ Standardize replacement activities

5 Waste oil 35% of material loss
normal of oil

*Information for the case example is adjusted and changed for the purpose of training.

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 QC3: Dyeing, Drying-1

1. Further management of chemical use for wastewater treatment.

2. Internal transportation of chemicals (re-consideration of use of plastic vinyl

(e.g., use of scaled container).

3. Standardized operation of cleaning activities (e.g., standard use of water for

cleaning).

4. Containers for chemicals (as provided by suppliers) – consider placing

order by bulk containers for the chemicals planned to be used in bulk.

15
*Information for the case example is adjusted and changed for the purpose of training.

General Wastewater Treatment

Material A
(yarn, etc.) Processing of raw
Material B material Product
(Dying chemical,
bleaching chemical)
Color,
Water Mixing,
bleach,
dissolving
rinsing

Waste and wastewater treatment

*Information for the case example is adjusted and changed for the purpose of training.

16
 Material Loss Identified at QC3: Dyeing, Drying-1
No. Loss Category Type of Material Loss
Wastewater and chemicals used for
1 Normal
wastewater treatment process
Waste plastic vinyl used for the
2 Normal
chemical transportation practice
Wastewater generated from the
4 Abnormal
cleaning process
Containers for chemicals (as
5 Theoretical
provided by suppliers)
Garment Department - 1
QCs 6-9: Cutting, Embellishment, Stitching, Finishing
No. Loss Category Type of Material Loss
1 Normal Used needles
2 Theoretical Edged yarn materials
Waste oil generated from the
3 Normal
maintenance activity
Management practice (Unit
4 Normal has been changed from “kg”
to “pieces” at cutting process.
5 Normal Waste printing chemicals
6 Normal Waste flocking chemicals
7 Abnormal Waste edged materials
Used/remained thread at the
8 Normal
sampling room
Countermeasure Expected reduction in material loss (kg)
Review chemical use and
25 % of material loss
its handling practice
Review internal
transportation practice of 10% of material loss
the chemical
Standardized cleaning
5% of material loss
operations
Consider placing order by
bulk containers for the
10% of material loss
chemicals planned to be
used in bulk.
*Information for the case example is adjusted and changed for the purpose of training.
17
Countermeasure Expected reduction in material loss (kg)
Review replacement activities
5% of material loss
of needles
Review scope of calculation 45% of material loss (also reduction in
defined by the machine time)
Determine replacement
schedule of oil based on 5% of material loss
product outputs.
Review the outputs in kg
(keep using “Kg”) in order to NA
quantify losses.
Further optimize printing 25% of material loss (also reduction in
chemicals used. time)
Further optimize the
5% of material loss
chemicals used.
Train operators to improve
handling practice that
10% of material loss
generate additional material
losses.
Consider reusing thread at
5% of material loss
other production units
18
*Information for the case example is adjusted and changed for the purpose of training.
 Next Step based on MFCA
Analysis

http://www.archiproducts.com/ja
http://hansoku.minonet.co.jp/teibanannai/wood_towel.html

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Propharm Japan Co., Ltd. All Rights reserved.

Next Steps advised by Expert

1. Use existing production/product management method for development of MFCA

2. Transform department-by-department to company-wider input-output

3. Man, machine, method + MATERIAL

4. Establish task force/project team with a sample product

5. Use existing shortfall summary meeting for the opportunity to review MFCA
progress

6. Use dyeing production management for easy-to-start implementation of MFCA

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 Kaizen Summary

Output (kg)
Cost for
Input (kg) material loss
Product Material loss (USD)

Before 2,501,310 1,201,048 750,262 3,500,723

After 1,462,276 1,201,048 261,228 2,046,537

Numerical information contained in the table is not related to other slides.

Propharm Japan Co., Ltd. All Rights reserved. 21

Group Presentation

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Make 2 presentations according to the following directions
1. Consider input and output - draft material flow model of your product and find
material losses as many as possible.
2. Show some ideas to reduce the subject material losses.

Sample output

Input Input Input Input

Quantity  Quantity  Quantity  Quantity 

centrer 1 center 2 center 3 center 4 

Material  Material  Material  Material 

Loss Loss Loss Loss

23

Thank you.

Hiroshi Tachikawa
2-1 Udagawacho, Shibuya-ku,
Tokyo, 150-0042, Japan
E-mail: hiroshi.tachikawa@propharm.jp
TEL: +81-(0)3-6328-3307
FAX: +81-(0)3-6368-5523
URL: http://en.propharm.co.jp

CONFIDENTIAL AND PROPRIETARY

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Any use of this material without specific permission of Propharm Japan Co., Ltd. is strictly prohibited