Reducing Manufacturing Cost and Production Cycle Time Case Study Nisanard’s Community Enterprise
Keywords:
cost reduction, cycle time, time study, ECRS techniqueAbstract
This research studies the community enterprise of Nisanard’s community, a small enterprise that makes many kinds of culinary products. The ready to cook under “Thai Chada” is a Pad Thai Cooking Ready Brand. It is one of the things made by the members. The problem with Thai Chada is that the price is higher compared with the competitive market’s average price. Regarding manufacturing lead time, spending more than two days on it affects the overtime cost that occurred, so researchers are looking for ways to reduce lead time and costs to increase the potential and be able to compete in the market further. The research aimed to solve the problem with four objectives: (1) finding the cost of a product; (2) improving manufacturing time by studying the standard time of each process; (3) finding the standard time; and (4) making the solution increase productivity and profits by using ECRS concepts for production process improvement. It was found that community enterprises had calculated an incorrect cost of production of 25.59 baht when it should be 33.05 baht per piece. Therefore, the researcher calculates the correct cost and the standard time in the new production process by timing the production process to get the right standard time that should be used in production. The ECRS concepts for reducing waste to improve the process, including R (Rearrange) and S (Simplify), resulted in the production of Chada Thai Pad Thai, ready to cook, being reduced from 995 min in 2 days to 472 min in only 1 day. The production time could be reduced by 532 minutes, or 52.56%, and this could reduce the average cost from 33.05 baht per piece to 30.05 baht per piece, or 9%. For the production capacity, it could be increased from 457 packs per month to 914 packs per month, which is 100% of the original production capacity.
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