Kaunas University of Technology

Faculty of Mechanical Engineering and Design

Improvement of the Door Production Process and

Technological Line in Furniture Manufacturing Enterprise
Master’s Final Degree Project

Kornelija Pikevičiūtė
Project author

Assoc. Prof. Dr. Rūta Rimašauskienė

Supervisor

Kaunas, 2019
Kaunas University of Technology
Faculty of Mechanical Engineering and Design

Improvement of the Door Production Process and

Technological Line in Furniture Manufacturing Enterprise
Master’s Final Degree Project
Industrial Engineering and Management (6211EX018)

Kornelija Pikevičiūtė
Project author

Assoc.Prof. Dr. Rūta Rimašauskienė

Supervisor

Lect. Dr. Vaidas Bivainis

Reviewer

Kaunas, 2019
Kaunas University of Technology
Faculty of Mechanical Engineering and Design
Kornelija Pikevičiūtė

Improvement of the Door Production Process and

Technological Line in Furniture Manufacturing Enterprise
Declaration of Academic Integrity

I confirm that the final project of mine, Kornelija Pikevičiūtė, on the topic „Improvement of the Door
Production Process and Technological Line in Furniture Manufacturing Enterprise” is written
completely by myself; all the provided data and research results are correct and have been obtained
honestly. None of the parts of this thesis have been plagiarised from any printed, Internet-based or
otherwise recorded sources. All direct and indirect quotations from external resources are indicated
in the list of references. No monetary funds (unless required by Law) have been paid to anyone for
any contribution to this project.

I fully and completely understand that any discovery of any manifestations/case/facts of dishonesty
inevitably results in me incurring a penalty according to the procedure(s) effective at Kaunas
University of Technology.

(name and surname filled in by hand) (signature)

Kaunas University of Technology
Faculty of Mechanical Engineering and Design

Task of the Master's final degree project

Given to the student – Kornelija Pikevičiūtė

1. Title of the project –

Improvement of the Door Production Process and Technological Line in Furniture Manufacturing
Enterprise.
(In English)
Durų gamybos proceso ir technologinės linijos modernizavimas baldų gamybos įmonėje.
(In Lithuanian)

2. Aim and tasks of the project –

The aim of this work is to improve the standard door production process and technological line by
applying quality management tools.

1. To analyse current door production process and technological line; identify main problems by
using different quality management tools.
2. To discuss and propose solutions for production process and technological line improvement.
3. To suggest improved door production technological line.

3. Initial data of the project –

-
4. Main requirements and conditions –
LEAN, shop-floor environment, automation possibilities
1

Project author Kornelija Pikevičiūtė

(Name, Surname) (Signature) (Date)

Supervisor Assoc. Prof. Rūta Rimašauskienė

(Name, Surname) (Signature) (Date)

Head of study Assoc. Prof. Regita Bendikienė

field programs (Name, Surname) (Signature) (Date)
Kornelija Pikevičiūtė. Improvement of the Door Production Process and Technological Line in
Furniture Manufacturing Enterprise. Master's Final Degree Project, supervisor Assoc. Prof. Dr. Rūta
Rimašauskienė; Faculty of Mechanical Engineering and Design, Kaunas University of Technology.

Study field and area (study field group): Production and Manufacturing Engineering (E10),
Engineering Sciences (E).

Keywords: Wooden door production, LEAN, 5S, Visual management.

Kaunas, 2019. 54 p.

Summary

The aim of the final work was to improve the technological line of production of standard doors and
production using quality tools. For this purpose, a small-medium-sized furniture manufacturing
company was selected. The company's door production line has a lot of manual work, unnecessary
movement of materials and workers, which causes a lot of rejects and takes a lot of time. In general,
it is difficult for the wood industry to fully automate small and medium-sized enterprises as they are
more engaged in individual production. After analysis of the technological line by using Pareto
analysis, Ishikawa chart, Flow process chart analysis, 5WHY method, and Spaghetti chart, the main
problematic production sections were identified: Painting, Smoothing and Drying. In the final work
it is proposed to change the layout of the technological line, additionally purchase machines for the
Painting-Drying sections. Also, Flow chart and Visual Management tools have been proposed to help
manage work environment and make operations easier. These proposals would help to reduce
unnecessary movement of materials, workers and would increase production efficiency.
Kornelija Pikevičiūtė. Durų gamybos proceso ir technologinės linijos modernizavimas baldų
gamybos įmonėje. Magistro baigiamasis projektas, vadovė doc. dr. Rūta Rimašauskienė; Kauno
technologijos universitetas, Mechanikos inžinerijos ir dizaino fakultetas.
Studijų kryptis ir sritis (studijų krypčių grupė): Gamybos inžinerija (E10), Inžinerijos mokslai (E).

Reikšminiai žodžiai: Medinių durų gamyba, LEAN, 5S, Vizualinis valdymas.

Kaunas, 2019. 54 p.

Santrauka

Baigiamojo darbo tikslas buvo pagerinti standartinės durų gamybos technologinę liniją ir gamybą
taikant kokybės įrankius. Šiam tikslui buvo pasirinkta mažoms-vidutinėms įmonėms priskiriama
baldų gamybos įmonė. Įmonėje esanti durų gamybos linija turi daug rankinio darbo, bereikalingo
medžiagų ir darbuotojų judėjimo, kas sukelia didelį skaičių broko ir sunaudoja daug laiko. Apskritai,
medienos pramonėje sunku pilnai automatizuoti mažas-vidutines įmones, nes jos daugiau užsiima
individualia gamyba. Išanalizavus liniją, taikant Pareto analizę, Ishikawa diagramą, Flow process
chart analizę, 5WHY metodą ir Spageti diagramą, buvo įvardintos pagrindinės probleminės gamybos
sekcijos: Dažymo, Paruošimo prieš dažymą ir Džiovinimo. Baigiamajame darbe pasiūlyta pakeisti
technologinės linijos išdėstymą, papildomai įsigyti mašinų Dažymo-Džiovinimo sekcijose. Taip pat,
pasiūlyta taikyti Flow chart ir Vizualinį valdymo įrankius, kurie padėtų sutvarkyti darbo aplinką ir
lengviau atlikti operacijas. Šie pasiūlymai padėtų sumažinti bereikalingą medžiagų-darbuotojų
judėjimą ir padidintų gamybos apimtis.
Table of contents

List of figures ..................................................................................................................................... 8

List of tables ....................................................................................................................................... 9
List of abbreviations and terms ...................................................................................................... 10
Introduction ..................................................................................................................................... 11
1. Literature review of quality management tools, Lean and automation possibilities in
Small-Medium Enterprises ............................................................................................................. 12
1.1. Tools of quality control and it`s application............................................................................. 12
1.2. Workstation design by using 5S tool and Maslow pyramid ..................................................... 13
1.3. Practical applications of Lean tools in Small-Medium Enterprises ......................................... 14
1.4. Wastes of Lean and main reasons of Lean implementation failure .......................................... 15
1.5. Importance of knowledge creation by Lean ............................................................................. 16
1.6. Possibilities of automation in wood industry ........................................................................... 17
2. An overview of the manufacturing organization .................................................................... 19
2.1. Technological line of standard door production and list of operations .................................... 19
2.2. Factory`s layout ........................................................................................................................ 21
2.3. Main rejects and causes in door production ............................................................................. 27
3. Improvement proposals ............................................................................................................ 31
3.1. Restructure of door technological line ..................................................................................... 31
3.1.1. Suggestions for Warehouse area. Unloading-loading priciple .............................................. 31
3.1.2. Suggestions for Cutting centre area ....................................................................................... 31
3.1.3. Suggestions for Press centre area and Veneer sawing/sewing centre area ............................ 32
3.1.4. Suggestions for CNC and Edge Banding centre area ............................................................ 33
3.1.5. Preparation for dyeing operation. Suggestions for Smoothing area ...................................... 33
3.1.6. Suggestions for Painting and Drying area ............................................................................. 34
3.1.7. Suggestions for Assembly and Packing area ......................................................................... 34
3.2. Equipment selection ................................................................................................................. 36
3.2.1. Suggestions for Finishing line ............................................................................................... 36
3.3. 5S application, Visual management, Flow chart and dust prevention ..................................... 37
4. Economical evaluation .............................................................................................................. 40
Conclusions ...................................................................................................................................... 43
List of references .............................................................................................................................. 44
Appendices ....................................................................................................................................... 46

7
List of figures

Fig. 1 5S implementation [16]........................................................................................................... 13

Fig. 2 Maslow and Workstation pyramids [15] ................................................................................. 14
Fig. 3 Main facilitators of changeability [28] ................................................................................... 18
Fig. 4 On the left: Model of possible classic standard door. On the right: Classic style door scheme
(a) - wall; b) – hinge; c) – collars; d) – door frame; e) – door panel) ................................................ 19
Fig. 5 Warehouse area ....................................................................................................................... 21
Fig. 6 Cutting machine PAOLONI.................................................................................................... 22
Fig. 7 Cutting centre area .................................................................................................................. 22
Fig. 8 CNC centre HOMAG (V BMG6311/60K) ............................................................................. 23
Fig. 9 ORMA OTTO (NPC/A/R) press machine .............................................................................. 23
Fig. 10 CNC and Press centres area .................................................................................................. 24
Fig. 11 Veneer sewing machine KUPER .......................................................................................... 24
Fig. 12 Edge Banding centre and Veneer sewing machine ............................................................... 25
Fig. 13 Packing area and Sanding centres ......................................................................................... 25
Fig. 14 Painting and Drying area....................................................................................................... 26
Fig. 15 Spaghetti diagram of current material flow. - Blue line marks MDF plate path; - Violet line
marks door frame path; - Green line marks veneer path; - Red line marks intermediate product path
to the final product. ............................................................................................................................ 27
Fig. 16 Pareto analysis for rejects of doors, per year. (Data was taken from Company X) .............. 28
Fig. 17 Ishikawa diagram for dyeing process ................................................................................... 29
Fig. 18 Warehouse area. On the left: Area for materials unloading; On the right: Area for products
loading ............................................................................................................................................... 31
Fig. 19 Cutting centre area ................................................................................................................ 32
Fig. 20 Press centre and Veneer storing area. ................................................................................... 32
Fig. 21 CNC and Edge Banding centre area ..................................................................................... 33
Fig. 22 Smoothing area ..................................................................................................................... 33
Fig. 23 Painting and Drying area....................................................................................................... 34
Fig. 24 Assembly and Packing area .................................................................................................. 35
Fig. 25 Spaghetti diagram of material flow after proposed shop-floor layout. - Blue line: Fibreboard
(MDF) plates; - Violet line: frames for door panels and door frames; -Yellow line: pressed frame and
MDF (intermediate product); - Green line: veneer gluing process; - Red line: further operations from
intermediate product to final product. ............................................................................................... 35
Fig. 26 Example of painting machine ............................................................................................... 37
Fig. 27 On the left: Dust removal machine; On the right: Special wood dust vacuum [33] ............. 38
Fig. 28 Shop floor environment. a) – CNC area, b) – hand tools for sanding, c) – hand spraying
workstation, d) – storage-press machine-various tool area, e) – cleaning tools in painting/drying areas,
f) – drying area. ................................................................................................................................. 38
Fig. 29 Veneer identification through Visual management. ............................................................. 39

8
List of tables

Table 1. Study results [25] ................................................................................................................ 17

Table 2. Main operations of door manufacturing ............................................................................. 20
Table 3. Main problems in Dyeing section ....................................................................................... 28
Table 4. Main problems in Smoothing section ................................................................................. 30
Table 5. Main problems in Drying section ....................................................................................... 30
Table 6. Properties of machines ........................................................................................................ 36
Table 7. Company`s Income data of 2016, 2017 and 2018 years ..................................................... 40
Table 8. Company`s Balance sheet of 2016, 2017 and 2018 years. ................................................. 40
Table 9. Profitability ratio evaluation of 2016, 2017 and 2018 years............................................... 41
Table 10. Project Cash Flow forecasting .......................................................................................... 41
Table 11. Extra information for Cash Flow forecasting ................................................................... 42
Table 12. Investment payback period ............................................................................................... 42

9
List of abbreviations and terms

Abbreviations:

Assoc. Prof. – Associate professor;

Lect. – Lecturer;

Prof. – Professor;

SME – Small-Medium Enterprises;

QM – Quality Management;

QMP – Quality Management Principles;

TQM – Total quality management;

WWII – Second World War;

QMS – Quality management systems

ISO – International Organization for Standardization;

SPC – Statistical Process Control;

DMAIC - Define-measure-analyse-improve-control model;

TPM – Total productive maintenance;

MDF – Medium Density Fibreboard.

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Introduction

The furniture industry occupies a very large part of global trade. This industry can be oriented towards
the international market, can help to develop the vast majority of other related industries, which would
have a significant impact on job creation, as well as would increase domestic product revenues.
Therefore, the development, improvement and prosperity of this industry are very important [1].

Due to the instability of the European economy and the increasing competition in the market, the
furniture industry needs to take innovative solutions to products and production processes. A lower
market share is influenced by the production price. Major companies threaten smaller businesses due
to increased investment in automation and computerization [2].

The aim and objectives

The aim of this work is to improve the standard door production process and technological line by
applying quality management tools.

The main objectives of this work:

1. To analyse current door production process and technological line; identify main problems by
using different quality management tools.

2. To discuss and propose solutions for production process and technological line improvement.

3. To suggest improved door production technological line.

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1. Literature review of quality management tools, Lean and automation possibilities in Small-
Medium Enterprises

QM is a system that ensures continuous improvement of the organization. There are 7 QMP that are
related with customer needs and requirements, quality of process improvements and methods. Where
leadership is advantage within organization and people are interested in work. Also, problem solution
and relationship management can be referred as principles of quality management. ISO is based on
these seven QMP`s [3]. The system of QM was created after WWII in order to improve quality in
manufacturing enterprises and the extension of QM usage had grown very fast. The most popular
method which connects different Company’s departments and improves quality continuously in order
to meet customer`s needs and requirements is TQM [4].

Lean construction – effort to use lean principals which came from Toyota production system, to
improve processes of construction by using minimum cost and creating huge value for customer needs
[5]. Especially, it is important for SME to adapt changes when there a vast competition with large
companies.

Proven that application of Lean theory is an effective way to improve production. Lean is more as
philosophy. It also includes methods and tools which help implement that philosophy. Actually, there
are no formal guidelines of how to apply Lean. In fact, much of the experience with installing lean is
derived from the industry [6].

1.1. Tools of quality control and its application

ISO is a network of the national standards institute that manages system of standardization. ISO 9001
standard most successful standard which provides products and service that meet requirements of
customers and executive. This standard is sought after by many enterprises. The main factors that
cause implementation of QMS and not maintain a certain level of quality are executive and labour
understanding of having higher quality and how much it is substantial in design of organization and
organizational culture [7].

Statistical process control – set of tools that is used to manage production of products and services. It
identifies factors that affect process quality, monitor processes. Most of SPC tools have visual
presentation for this reason it is easier to use, analyse and understand. Main tools of SPC widely used
are described below [8]:
– Process flowchart is one of quality tools that define time that is spent producing, delays in
different operations, distance between processes or equipment [9].
– Pareto analysis is a very easily implemented tool which shows quality problems arranged from
most to less important. This analysis defines 80-20 rule which says that many occurred
problems are caused by only few reasons. According to studies, 80% of defined problems
have the highest impact on the process, but it does not mean that remaining 20% are not
important for consideration. [4].
– Ishikawa (fishbone) diagram – graphical tool which helps to get deeper into problem by
identifying causes. This tool connects different causes and shows possibilities for
improvements [10] [11].

According to the case study in Sri Lanka, Pareto analysis helped to find main impact on
manufacturing processes, Cause-and-effect diagram enabled to go deeper into major problems by

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identifying causes of the three-wheeler accessory manufacturing process [12]. As a conclusion it can
be said that these tools have least cost for implementing Lean.

According to studies, SPC and DMAIC model can be used to make continuous improvement in
manufacturing company. What is DMAIC model? It is a cycle of activities to improve and optimize
various processes within enterprise. Define stands for problems, goals and objects identifying.
Measure stands for data collection to set up baselines. Analyse stands for root cause identifying (for
example using fishbone diagram). Improve stands for solution finding to the problems. Control stands
for monitoring made improvements (for example by using Control chart). The conclusions were made
that control charts, histograms, capability indexes can help to control process quality and achieve
customer requirements. The combination of those two tools can help to achieve desired results of
efficiency and quality and solve main problems which occur in processes [13].

By Sousa and others performed research, one component from automation and machine industry
which had the biggest variability was chosen to investigate. Statistical process control was used to
evaluate process capability. Control chart was made up, process performance indices were evaluated.
It resulted that several points were outside the limits. This means that process has failed. After SPC
evaluation, root cause analysis and improvement plans were made. Employees discussed in groups
how to improve process capability and quality. These tools showed main causes of nonconformities.
The application of Quality tools in this study helped to identify process variability which can be
caused by, for example, wear of equipment [14].

Authors Gejdos and Simanova analysed the causes of abnormalities in adhesion application on
furniture parts by using Ishikawa diagram. Main causes from the perspective of employees, service
equipment, working conditions and input materials were identified. Identification of causes allowed
to prepare a plan for moulding process of how operator should act if there would appear any
abnormalities [10].

1.2. Workstation design by using 5S tool and Maslow pyramid

That production efficiency would be very high it is very important to create/ to design workstation
properly like correctly arrange equipment, materials, tools that for employee would be easier to work.
There is a very big differences between standard workstation and lean workstation, therefore it is
substantial to maintain efficiency. In standard workstations there are no added value by worker. Lean
workstation is more focused on creation and designing ergonomic environment to worker. All
auxiliary and main work tools should be positioned in such a way as to enable the worker to work in
a safe, comfortable and efficient manner [15].

Fig. 1 5S implementation [16]

13
It can be achieved by implementing 5s tool which helps to identify waste and properly prepare
workspace. This tool came from Japan (see Fig. 1) and consists of five main steps. 5s is suitable for
all types of organizations and industries.

Fig. 2 Maslow and Workstation pyramids [15]

Also, there is a good practical application of Maslow pyramid to Workstation design (see Fig. 2). It
shows that to reach highest levels, the lowers should be done first and how it should be developed to
reach full effectiveness. To achieve excellence worker should complete functionality, effectiveness,
efficiency and satisfaction which are related with safety and work environment, teamwork and
motivation and continuous improvement [15].

1.3. Practical applications of Lean tools in Small-Medium Enterprises

The application of Lean not necessarily always is implemented at first time and especially in SME.
Two described cases (Case A - engineering company, Case B company from construction industry)
in article shows that staff domesticates Lean at a very small step because everything begins from the
management and are transferred to other employees. Case A have tried to implement Lean by
themselves, while Case B invited an expert. Case A had a lack of knowledge of implementing Lean
and from top management this task was forwarded to the workers. Team had no clear strategy, nor
inspiration in improvement and it caused team refusal. As a result, company accomplished to
implement minimum of Lean tools – 5S. Different results appeared in Case B. At first, an expert got
familiar the staff about Lean concept. Team was educated about different lean tools and methods,
they had clarified their goals and, as result, they accomplished to implement 5S and Standard work.
Not everyone can accept the changes because processes and habits going fast. As a conclusion it can
be said that Manager`s aim is to be a wisdom, a leader to employees who will help accept different
system and methodology of work because SME have very simple system and too much flexibility
while big companies have difficult and much more systems [17].

According to [18], the implementation of Lean practices in SME located in Romania were applied.
Main benefits of this tool were: minimization of inventories, reducing working time caused reduced
cost, increased labour productivity – employees were motivated, fully prepared and trained.

Another research [19] was done to know how SME accomplish implementation of Lean
manufacturing. Companies from metal processing, wood and paper, chemicals, food, aviation,

14
automotive, construction industries participated in research. Those companies are very similar to
Company X because all of them produce in small batch or medium batch. The main purpose of
implementing lean was to reduce waste, employees, variability – they wanted to improve companies’
efficiency. The main wastes were defined as unnecessary movement, rejects, machine failures,
transportation. The same problems have Company X. Half of these companies implemented Lean
Manufacturing systems in some areas, others did not achieve implementation or did not see any
improvement. Most of the respondents implemented Lean tools individually. Main problems during
implementation were huge current workload and lack of workers engagement, their refusal, lack of
knowledge, motivation, top management support. The main tools of implemented lean were: 5S,
SMED, Teamwork, Work standardization.

One more analysis [20] was done in mechanical equipment company and several Lean tools were
proposed for improvement. During research main wastes in production were long storage of
material/intermediate products, distances between different machines, absence of one-flow
production, equipment stoppage. Respondents stated that manufacturing in having this kind of order,
they got used to it and they have not imagined that there is another way for improvements. To have
such wastes caused huge production costs. Few tools that were proposed for top management in order
to eliminate non added value activities: 5S, TPM, Kanban, Line balancing, Standard work etc.

According to research in Austrian company from automotive industry, 5S implementation is

inseparable from company`s culture. Every new employee is trained and educated about Lean
instruments in company. Company have such practice that every worker gains monthly bonuses if
they help to improve 5S in company. Implementation helped to increase productivity more than
100%. Moreover, by using 5S company has safer, cleaner environment with increased quality of
products [16].

Another research from automotive industry was made. Company manufactures three-wheeler body
parts and has nearly 60 employees. Most repetitive problems were identified: long lead time, products
variability, low volumes. As a result, layout was changed in order to have reduced material/workers
movement and 5S was installed in order to increase productivity, reduce costs and have safety
environment. Implementation of 5S, Cause-effect analysis, Standardization, SPC – quality
improvement tools that are financial worthwhile [12].

In summary, below are listed few Lean practices that could be adapt into Small-Medium sized
companies:

Reduce setup time; Kanban; Small lot size; Supplier management; Preventive maintenance;
Multifunction employees; Visual control; Quality circles (employee involvement); TQM; Training;
Teamwork; Production smoothing continuous improvement; 5S and Standardization [18] [20].

1.4. Wastes of Lean and main reasons of Lean implementation failure

Lean applied tools can show improvements in cost, quality, reliability and delivery. The
improvements result from better material utilization and faster work cycles. The main groups of
wastes are identified: 1. Overflow when there is too much of production; 2. Frequent errors which
cause rework; 3. Too much inventory which cause higher costs; 4. Not suitable manufacturing where
wrong tools are used; 5. Unnecessary workers movements which lead to wasted time and higher costs;

15
6. Pauses when employees/materials are inactive; 7. Unused employees where abilities and
knowledge are not applied properly. Those errors can be done due to poor management [21].

Often SMEs find it difficult to implement Lean, there are lot of research done when companies fail
to fully implement lean, it requires a lot of commitment not only from top management but also from
workers. It is said that in the range 60-90% of failures appear implementing Lean.

According to [22],[17], it is not so easy for SME to implement lean tools. It was evaluated that only
30 % of lean implementation are achieved. The key factors that showed as a challenge to implement
lean were:

– Scarce resources;
– Staff declining to let in Lean;
– The lack of understanding of having lean;
– Cultural issues within company,
– The lack of knowledge,
– Lack of top management commitment etc.

1.5. Importance of knowledge creation by Lean

Knowledge creation is one of the main features to successfully implement lean construction because
knowledge is vital advantage in adding value in various industries. There are two types of knowledge:
Explicit – the one which can be easily shared within company (data, manuals etc.) and tacit – the one
which can`t be transferred and systemized [5].

There are six steps which help to model the acquired knowledge: learning, exploring, capturing,
storing, sharing and exploiting [23].

Workers are the most important assets in the company. It is important that leadership encourage,
promote and truly engage in this asset in order to maximize their capabilities. Training is one of the
most important activities to ensure and increase knowledge of labour, beneficial to everyone within
company: to the employer and the worker. This kind of activity provides and maximize flexibility
and generating ideas. The proper amount of knowledge about Lean implementation causes better
results of implementation. These two factors are directly related [17]. Higher quality of products and
services can be offered by workers who have such properties. Training, workshops motivates workers
to seek higher goals, deepens their skills and knowledge, helps to believe in themselves. The regular
workshops that are related with their jobs deeply develop workers. Also, there are plenty of other
activities that helps to improve or increase knowledge like various meetings, group projects,
workshops with different departments within company, exhibitions, business trips, seminars, cultural
events, one day per week meetings etc [24].

According to studies, creating effective knowledge can increase the innovation in order to identify an
effective way to solve problems, to dispose of waste and to maintain competitiveness. It also gives
start-up knowledge to future projects, which can quickly make decisions. In addition, it also helps to
reduce costs and improve quality. Executives inadvertently initiate knowledge improvement when
implement Lean philosophy. But they can’t forget and should always seek to create more valuable
and more potential knowledge system with regard to improve Lean efficiency [24].

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1.6. Possibilities of automation in wood industry

Many industries have highly implemented and improved automation systems and robots that assist in
various production processes. It is harder for those small companies to automate processes that do
not have the expertise in automation or choose to automate the most complex production process that
is copied from the company that is advanced in automation. Main factors that complicate application
of automation system are lack of understanding how to program time and cost, how to identify key
factors, additional equipment and lack of knowledge how to embody those projects. Wood industry
is one of the least automated industry. Only 0.2 % of all industrial robots worldwide are installed in
wood industry. Most of the processes are manual and determined as having the least improvement of
production systems in the future. It is said that there is a 20- or 30-years gap between automotive and
woodworking industries [25] [26].

According to the study, results are showed below in Table 1, the biggest potential for automation
development has packing, painting and palletizing, machine tending processes in woodworking
industry.

Table 1. Study results [25]

Driving forces Applications Requirements Hinders
Improved ergonomics and Packaging Competence of personnel Fear of employees to lose
competitiveness Palletizing Quality of raw material their job
Increased capacity Machine tending Redesign/adapt product Lack of knowledge
Quality Painting system Low production volume
Working environment Management involvement Problems with handling of
solid wood

It is important to keep in mind that in order to have an automated system, it is necessary to adapt the
product design to the abilities of the robot or think about remodelling of production system, develop
new ideas of products. Usually, companies have too many requirements and take a lot of time to
realize that the robots and machines have limits.

Most of small or medium sized enterprises (SME) want to be sustainable and competitive. It is
important for them to have easily control interfaces, not manual monotonous working environment
and high quality. Main fears are losing job because of lack of competency. However, that competency
can be easily achieved.

There is very high pressure for enterprises which are located in high-cost countries to stay
competitive. Companies are looking for various solutions of automation, but don’t have enough
understanding of how to implement this. As guidelines, it can be presented a maturity matrix or
readiness model tailor-made that would help to understand implementation of automation [25].

Another research on flexible-automated manufacturing was made [27] by interviewing 3 small-

medium enterprises – two of them manufacture sheet metal and another produces wood products. All
of them have under 50 employees and invested in automation possibilities or have plans for long-
term automation strategies. In study case, categories of flexible automation (Collaborative robots,
autonomous automation and mobile automation) were evaluated.

According to collected data, main requirements for flexible automation are:

17
– User friendly programming – for SME, especially which have small volumes and huge
variability of products, is important to have easy operated robots where set-up operation would
consume short time (it means few minutes). One of case company had to manufacture product
manually because machine programming took several hours.
– Material handling – respondents require to reduce manual material feeding into/out of
machines. Also, companies expect the flexible automation in manufacturing during night,
therefore, without operator’s support.
– Safety – companies look for possibilities to produce products in low volumes manually
because it takes a lot of time to set-up machines. Also, they requested machines without safety
fences because of limited space of shop-floor or required manual access to machine.
– Mobility – Companies have difficult production layout where different machines have a long
distance between each other. In order to have flexible automation, they want to have moveable
automated technology. Moreover, respondents highlight manually moveable technology.
– Payload – interviewers pointed the importance to have machines which could lift large and
heavy materials.

After evaluation of flexible requirements, mobile automation is more suitable to fulfil those
requirements because it provides handling, easy programming, mobility, safety and payload
solutions.

However, in SME`s where production is mostly customized, the universal machines for
manufacturing flexibility are considered as advantage.

Fig. 3 Main facilitators of changeability [28]

What drive companies to automate manufacturing processes is the intention to gain bigger market
share, to have sustainable technology and stable financial condition. Main five facilitators of
changeability are defined above in Fig. 3 [28].

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2. An overview of the manufacturing organization

The Company X was established in 1998. The company is located in northwest of Lithuania, at 7000
m2 production area. Currently, the company has 110 employees. Company produces such products
as various types of doors like fire doors, acoustic doors, standard doors and production of individual
design furniture (The individual production is one of manufacturing approaches when customized
(make-to-order or engineer-to-order) products are made in small batches. By workshop principle,
individual production is arranged where manufacturing technologies are in one area). Overall,
Company X manufactures more than 1200 different parts, it means that SME should have strong
skills how to manage labour and production processes to reduce production costs. For that reason, the
technological line of standard door manufacturing was chosen for research to apply quality
management tools in order to find which processes must be improved.

2.1. Technological line of standard door production and list of operations

Currently, standard door production has 21 operations to be completed from the semi-prepared raw
material to the final product (example is depicted in Fig. 4).

Fig. 4 On the left: Model of possible classic standard door. On the right: Classic style door scheme (a) - wall;
b) – hinge; c) – collars; d) – door frame; e) – door panel)

Production operations can be divided into 6 main sections which identifies main units in production
area. Accordingly, the production area could be divided into 6 different units that would remind the
one-piece flow line. The units/sections are described below:

– Cutting: raw material is cut into different parts; the shape of lock is cut off according to the
request of the customer;
– Smoothing: section consists of sanding, priming, varnishing processes where unnecessary
particles are removed from the part surface; it helps to level the surface by powder; it prepares
doors for painting process;
– Painting/Spraying: when workers manually dye parts; or special dyeing machine are
programmed to dye doors with requested colour;
– Drying: doors are manually transported from dyeing machine to drying room where they are
hanged;

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– Bonding/Assembling: door frame and door panels are assembled;
– Packing/Shipping: assembled doors are transported to packing area where they are stacked on
palettes and wrap with a special packing tape, after that they are loaded into truck by labour
help.

The detailed list of operations, required labour quantity and machines are described in table below:

Table 2. Main operations of door manufacturing

No. Operation Machine tools Labour force

1 Wood boards cutting to bushes (bucks, fasters) Multi-cutting machine 2

2 Brunches cutting Cross cutting machine 1

3 Bushes milling Treadmill machine 1
4 Bushes planing Four-sided planer machine 1
5 Frame of door panel assembly Pneumatic tool and worktable 2
6 Door frame assembly Pneumatic tool and worktable 2
Fibreboard (MDF) cutting for door panels and
7 Cutting machine PAOLONI 1
door frames
Fibreboard (MDF) gluing on door panel and
8 Press Gluing machine ORMA 2/1
door frame
9 Wood veneer sawing Guillotine 1
10 Wood veneer sewing KUPER machine 1
11 Veneer gluing on door panel and door frame Press and Gluing machine ORMA 2/1
Door sawing according to exact dimensions,
12 CNC HOMAG 2
holes drilling for locks, handles and hinges
Banding machine of edges OLIMPIC
13 Edges banding on door panel and door frame 1
K800
14 Surface sanding Grinding machine SCINDYA 2
High pressure powder spray gun
15 Surface staining and priming 4
VAGNER
16 Surface peeling Hand grinders 2 units 4
High pressure powder spray gun
17 Product varnishing, dyeing 2
VAGNER, MAKOR dyeing machine
18 Product drying Drying room 1
19 Quality control before assembly Worktable, visual checking 1
20 Assembly of door frame and door panel Worktable 2
21 Door packing Worktable 2

As it was mentioned in the company`s overview, number of employees – 110; they work in 2 shifts
after 8 hours. Weekends are off days. In 1st shift works approx. 80-90 people (incl. administration
~30 people), in 2nd shift works 10-20 people. To complete all operations the needed quantity of
workers – 37 people. It is possible that every worker has more than one operation to complete that
means that the same worker half of the day can work for example in cutting section and remaining
time can work in packing section.

20
In Appendix 1, as can be seen, the Flow process chart of door production is described. Process has
24 operations, 21 movement operations, 1 inspection, 2 storage operations and 3 machine setup
operations. There could be inserted more actions because these actions are not proceeding in turn.
Operations from wood boards cutting to door frame assembly are proceeded in raw material
preparation shop which is located 3 km from furniture and door production area. Some operations
beginning at the same time. It is assumed that process takes 15 h 15 minutes. Data of operation length
in Flow process chart was taken average. Company produces approx. 300 units per month. For
comparison, Takt time is calculated below to see how much time the production should take in order
to meet customers` demand.

If the average quantity of produced units per month are 300 and there is approx. 22 working days per
month, then daily demand is:

Daily demand: 300 units / 22 working days = 13,63 units/day;

Hereinafter, if company works in two shifts after 8 hours, then 30 minutes takes to have lunch, also
30 minutes for additional breaks, then Total available time to work in two shifts are:

960 min – 60 min – 60 min = 840 min

Takt time: 840 min / 13,63 units = 61,63 min/unit.

The conclusion can be made that production does not proceed acc. to customer`s demand.

2.2. Factory`s layout

Company`s total area 7000 m2. Currently, it is used more than ~3500m2. In Appendix 2 we can find
full scheme of current technological line of door production. As can be seen that there is missing the
concrete flow of door manufacturing technological line. Comparing the results of flow process chart
and layout of factory as can be seen there are a lot of people movement to and fro. Furthermore, some
processes are used few times in the same line. To analyse deeper how the manufacturing is being
done and what kind of machine tools are used below can be seen screenshots of factory layout.

In Fig. 5 the main company’s warehouse is depicted. Various plates, parts for furniture, small part of
raw material etc. are stored here. The red marked area in Fig. 8 are shelfs for storage. Shelf size is 2,8
m x 2 m x 10 m. On the same shelf can be stored different materials. Approx. distance between line
of shelfs is 4 m. Approximate length and width of warehouse is 48 m x 24 m. The warehouse area is
quite huge because the truck can easily move inside the warehouse and is easier to load and unload
materials and products. There is enough space for workers movement with loader.

Fig. 5 Warehouse area

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The cutting machine PAOLONI in Fig. 6 is automatic cutting machine where worker needs to set the
cutting program and put bunch of material on special handles. Machine tool independently takes
wooden plates, put automatically on cutting area and cut according to program. Also, equipment has
connected dust removal which works all the time and helps to reduce dust in factory environment.
Later, dust is used as biofuel in boiler house.

Fig. 6 Cutting machine PAOLONI

In Fig. 7 green marked squares devote for storing. The cut material is placed in green marked area
and later are taken for another operation. Red marked are devoted for material which is used in cutting
operation. The length and width of depicted area is approx. 18 m x 20 m.

Fig. 7 Cutting centre area

CNC machining and processing centres Fig. 8 is used for woodworking. Equipment is designed for
the production of furniture and components as well as the processing of solid wood and plastics with
4-axis capabilities.

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HOMAG’s process technologies are as diverse as the equipment features provided by CNC
machining centres including sawing, routing, drilling, separating and measuring.

CNC machines are used for various material machining, cutting, drilling, milling, etc. Those CNC
machines ensure large capacity increasing the capability up to 2.5 times and adaptability in
manufacturing and automation systems. CNC machining processes are very important in wood
industry because surface adhesion of product to other materials, waste reduction and wood
appearance depends on machining quality.

Company has CNC Homag - V BMG6311/60K type 2 units. It is used for door and furniture
production. In standard door production it helps to cut doors in exact dimensions, to cut off holes for
hinges, place for locks, cut off the programmed pattern. Usually, it is set up repeatedly because
company has a huge variety of products and customer has possibility to choose what kind of door he
wants. It consumes a few minutes to set certain program for CNC. Also, like cutting centre, CNC has
dust removal for dust/waste reduction in factory environment.

Fig. 8 CNC centre HOMAG (V BMG6311/60K)

Pressing and gluing centre ORMA OTTO - NPC/A/R type hot glue press with automatic glue
application function and belt conveyor with rolling up system (Fig. 9 and 10). It can press up natural
veneer sheets, high pressure laminate (HPL, CPL), HDF, MDF or solid wood panels with maximum
size of 3000 x 1300 mm. In production line it is used for MDF plate and veneer gluing. Red marked
square is as storage station where intermediate product is taken to another operation. Blue marked
square is devoted as glue station. Black marked square is place for materials that are prepared for
pressing operation. General length and width of depicted area in Fig. 13 is 30 m x 18 m.

Fig. 9 ORMA OTTO (NPC/A/R) press machine

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Fig. 10 CNC and Press centres area

In Fig. 11 and 12, before Press operation, veneer strips are cut off in required length by Guillotine
(usually the standard length is 2,5). Width of veneer strip ranges in 8-10 cm. For the standard door it
requires usually 80 cm with of sewed veneer strips. For veneer sewing Kuper machine tool is used
(Fig. 11). Also, sewed veneer plates are stored near the machine tool for further press operation.

After CNC operation intermediate product is transferred to Edge Banding centre (Fig. 12) where
machine brims door edges. After that, doors are placed in green marked square and waits for sanding
operation. Blue marked square is devoted for edges, red marked square is devoted for cut off veneer
strips and green marked area is devoted for sewed strips. Approximate length and width of depicted
area is 8 m x 6 m.

Fig. 11 Veneer sewing machine KUPER

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Fig. 12 Edge Banding centre and Veneer sewing machine

In Fig. 163 before spraying, doors and door panels are sanded and primed (if it is required by the
created door project). Company has several machines for that operation but also, these operations are
made manually by human – with hand sander or sandpaper. Machines are located separately: few of
them are in main area, others are in special Preparation before painting area. Also, dust removal is
installed but there is still plenty of dust.

Fig. 13 Packing area and Sanding centres

Packing area is marked in bright green colour. Near to this area there are 3 sanding centres and
separate room with one more sanding centre and hand tools for preparation before painting.
Approximate length and width of depicted area is 18 m x 24 m.

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The most complicated areas in company are spraying and drying (Fig. 14). Company has special
MAKOR dyeing machine, which is used for door priming, varnishing, painting services. It is
automatic spraying machine with lift and rotation mechanisms. Paints doors up to 2400 mm long and
1100 mm wide.

Also, there are built additional spray rooms for manual spraying. It is difficult and though process
and worker must be well trained for this job because usually the result depends on worker`s job.
Furthermore, there is a lot of dust in shop-floor environment that cause rejects. Approximate length
and width of painting and drying sections is 42 m x 12 m.

Fig. 14 Painting and Drying area

Every defined area could be and must be improved because for standard door production line has
huge, inaccurate, unnecessary movement of workers and materials, a quite big part of area takes
storage of intermediate products. Over too big and long storage, pallets are not marked acc. to order,
so usually, workers lost the intermediate products. These factors cause rejects and due to these factors,
company often fails to meet customers` demand. Accordingly, they accept fewer orders in order to
meet the demand. Basically, if company would not face such problems, they could accept more and
bigger orders which automatically would improve financial status.

In order to understand what the movement of materials in shop-floor environment is, Spaghetti
diagram was created (Fig. 15).

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Fig. 15 Spaghetti diagram of current material flow. - Blue line marks MDF plate path; - Violet line marks
door frame path; - Green line marks veneer path; - Red line marks intermediate product path to the final
product.

As it can be seen in Fig. 15, there is missing concrete one-piece flow production line. Processes can
be improved not only from perspective of modern machines, layout change, but also from perspective
of usage of quality management tools.

2.3. Main rejects and causes in door production

It is well known that many SME confronts rejects or other non-conformities in production area. The
same example is in Company X. To find out which section/unit mentioned before has most non-
conformities, Pareto analysis was carried out (Fig. 16).

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Pareto analysis for rejects of doors, per year
350 120%

300 100%
98% 100%
250 93% 80%
85%
200
60%
65%
150
40%
100
40%

50 20%

0 0%
Dyeing Smoothing Drying Cutting Packing Assembling
Frequency 288 180 144 54 36 18
Percentage 40% 65% 85% 93% 98% 100%

Frequency Percentage

Fig. 16 Pareto analysis for rejects of doors, per year. (Data was taken from Company X)

As it can be seen, the 80-20 rule is applied, as result, more than 80% of rejects are caused by 3
sections: Dyeing, Smoothing and Drying. It shows that these sections must be improved. Company
manufactures approx. 300 units per month. Accordingly, to make Pareto analysis, data of average
door production per year was taken.

After observation, main problems and causes in Dyeing section were identified in Table 3:

Table 3. Main problems in Dyeing section

Problem Cause Problem Cause
Uneven surface Too little of dye was used “Craters” Contamination of painting
equipment; Surface
contamination
Scones on surface Paint spamming Poured pattern Too much ink; the part is painted
too many times, no longer notice
the veneer pattern
Does not match the colour Contamination of painting Drip Excessive amount of paint is
of the standard equipment; Uneven air sprayed at a time; Inappropriate
supply; Irregular spray solvent; Too much solvent;
paint Inadequate equipment; Incorrect
dye equipment settings
Rough surface Contaminated painting “Orange peel” Inappropriate solvent; Inadequate
environment or painting painting equipment; Incorrect
equipment dyeing equipment settings; Little
paint;

Since the painting section forms 40% of total rejects, it is possible to analyse causes more deeply. For
root cause analysis Ishikawa diagram was applied.

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Fig. 17 Ishikawa diagram for dyeing process

As it can be seen from Fig. 17, causes were reviewed from perspective of measurement, materials,
methods, environment, manpower and machines. It can be assumed that the impact for rejects have
causes from all categories and effects usually observes in a process. As a conclusion, it can be said
that the process needs improvements in all categories.

To deeper analyse the problem, 5-WHY method can be applied. Incorrect proportions of mixed
substances from Measurement section was taken as an example which is showed below:

Problem: Incorrect proportions of mixed substances

WHY?

Worker wrongly poured dyes

WHY?

Worker didn’t look or wrongly looked at instruction of dyes mixing

WHY?

Worker`s attitude to the accuracy of the operation is irresponsible or Worker doesn’t know where to
find this instruction

WHY?

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There isn`t designated person who would train and supervise workers as they perform manual
operations

WHY?

Company`s administration or Production manager doesn’t pay enough attention to increase

employee’s knowledge/ qualification in how to work qualitatively in order to reduce rejects.

The conclusion can be made that Company doesn’t invest enough in employee’s knowledge;
Company doesn’t prepare workers properly for manual operations. That is why Company have so
many rejects and that can be one of the reasons why Company has high turnover of employees.

After observation, main problems and causes in Smoothing section were defined in Table 4:

Table 4. Main problems in Smoothing section

Problem Cause Problem Cause
Uneven surface Broken veneer, primer Orange peel The badly strangled surface
Irregular edges Frayed edges; poorly Grinding marks Too rough sanding paper;
prepared Unsaturated primer
Scrub paint Too rough grinding paper Dust Badly blown dust from the
details

After observation, main causes and problems in drying section were identified in Table 5:

Table 5. Main problems in Drying section

Problem Cause Problem Cause
Scones on surface Drying spamming Drip Incorrect handling in
drying area
Dust Contaminant drying area, Spots Fingerprints; dyed parts
bad insolation, mess in handling on dirty, uneven
production area surfaces

As it can be seen from tables given above, most rejects are made manually, by humans. Company do
not have automatic flow, and every movement, transportation of parts should be made with human
help. Human factor has a huge impact on rejects. Another huge problem in all 3 sections is dust. Since
all production are made from timber, and different processes are proceeded in the same area, the
rejects occur very usually. Company has equipment for dust reduction, but it is not effective enough
because the area is big and there is no isolation or “tunnel” for dyeing and drying processes, door
production line does not have one-piece flow line. Although workers clean area periodically and
spend a lot of time for it, the dust builds up on the surface of the parts because the air flow is not
regulated.

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3. Improvement proposals

Main possibilities to reduce waste as unnecessary material transportation and worker`s movement,
possible rejects, production time are to restructure door production technological line, buy new
equipment for finishing line, to install transportation lines, change hand tools to machines, to take
more attention to dust prevention. These proposals are based on Lean Manufacturing, 5S tool
application and Visual management.

3.1. Restructure of door technological line

As it was mentioned before Company X activity is related with individual production. Proposed
restructure of door technological line is depicted in Appendix 3. It begins from Warehouse,
continuous through Cutting centre, Gluing centre, Veneer sawing/sewing, CNC centre, Edge Banding
centre, Sanding centre, Painting centre, UV dryer centre, Assembly and packaging centre and ends
on Finished product warehouse. The purpose of this restructure is to have one-piece flow, that would
remind push-pull system. Since restructuration could not be made live, it will be proposed in the
AutoCad drawing. Description and screen of every section is depicted below.

3.1.1. Suggestions for Warehouse area. Unloading-loading principle

Since there is enough free space, almost half of the factory, the factory could be expanded. Other
storage materials from the production department could be moved to the New warehouse. Such
warehouse could have unloading-loading system. It means that Cargo would enter the warehouse
through 1st gates, unload raw material or semi-prepared raw material. Then the truck would drive
through the warehouse area to the finished product storage, there products would be loaded to the
Cargo and would leave Factory through 2nd gates (Fig. 18). It would help to reduce logistics costs.

Fig. 18 Warehouse area. On the left: Area for materials unloading; On the right: Area for products loading

Red marked squares are devoted for other materials and intermediate products, orange squares are
devoted for door frames, yellowish squares are devoted for MDF plates, pink marked area is for
finished products and yellow area is marked as lading location. Suggested warehouse would be a little
bit expanded and approximate length and width would be 102 m x 24 m.

3.1.2. Suggestions for Cutting centre area

Cutting centre is the start point where MDF is cut in request dimension for the door panel and door
frame. In Appendix 3 it can be noticed that centre is placed in line with Gluing and CNC machines.
In Fig. 19 it is proposed to have prepared place for MDF (marked in yellowish).

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Fig. 19 Cutting centre area

Red marked area is depicted as storage place for cut materials, door frames are prepared and stored
in orange marked area to be put on the transporter. After cutting operation MDF plate is put on the
door frame and then it is transferred to the press centre. Approximate length and width of depicted
area is 10 m x 12 m.

3.1.3. Suggestions for Press centre area and Veneer sawing/sewing centre area

Cut off MDF by the help of transporter line arrives in 1st Press centre where MDF (Fibreboard) are
glued on frame. Frames are prepared for press operation, when MDF arrives, frame is put between 2
MDF plates (Fig. 20). After operation it goes to the 2nd Press centre where before 2nd operation,
between press centres, veneer is put on the both sides of frame. There is special place for sewed
veneer which should be prepared before gluing operation and arranged by the type of veneer. Veneer
is glued on both sides; accordingly, it is proposed to have two Presses in line in order to reduce
material, workers movement and unexpected machine shutdown. It is proposed to move 2nd Press
from previous location in main production area.

Fig. 20 Press centre and Veneer storing area.

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As it was mentioned before, prepared veneer is arranged acc. to colours: each colour for each type of
wood. The bright blue marked square is devoted as glue station. Approximate length and width of
depicted area is 10 m x 12 m.

3.1.4. Suggestions for CNC and Edge Banding centre area

The location of CNC machines remains the same (Fig. 21), except it is proposed to rotate it 90°
degrees in order to have easier product transportation from press to CNC centre. Edge Banding centre
is moved closer CNC machines, near the Sanding centre in order to avoid unnecessary movement and
rejects. Transportation line between CNC centre is not required because distance is too short and
manual transportation by worker would be more comfortable than it was previous.

Fig. 21 CNC and Edge Banding centre area

Red marked area is designated as storage for glued intermediate product. Approximate length and
width of depicted area is 13 m x 12 m.

3.1.5. Preparation for dyeing operation. Suggestions for Smoothing area

From the CNC centre, intermediate products are transported to sanding centre/smoothing room (Fig.
22).

Fig. 22 Smoothing area

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Hand tools for smoothing and grinders are moved near to the CNC centres in order to have production
flow and avoid additional movement which can cause rejects. Smoothing area have 3 gates: 1st gates
connects with Old Drying area (it could only be used for emergency cases in order to avoid uneven
air supply which causes dust in the Painting and Drying room), 2nd with main production department
and 3rd connects with Painting area. Also, smoothing room would have dust removal machine.

3.1.6. Suggestions for Painting and Drying area

In Fig. 23 possible layout for finishing line is depicted below.

Fig. 23 Painting and Drying area

Considering that Painting and Drying areas cause 40% and 20% of rejects respectively, there is a
possibility to install 2 painting machines 2 drying machines and one sanding machine between 1 st
Painting and Drying machine because after 1st coating it is required to brush the surface in order to
have good quality product and avoid unnecessary particles on surface (machines will be described in
next chapter), they would be connected by transportation line. In order to avoid dust, additional dust
removal would be installed on the brushing machine.

3.1.7. Suggestions for Assembly and Packing area

In Fig. 24, Assembly/Packing/Quality check location is moved from the middle of production
department near to the Drying machine in order to reduce movement, also, it would be more
comfortable for workers to assemble and pack in the same place. Near the packing area, place for
packed doors would be prepared, then with help of forklift it would be transported to the finished
product storage.

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Fig. 24 Assembly and Packing area

In order to see how the material flow would look after layout restructure, Spaghetti diagram was
created (Fig. 25).

Fig. 25 Spaghetti diagram of material flow after proposed shop-floor layout. - Blue line: Fibreboard (MDF)
plates; - Violet line: frames for door panels and door frames; -Yellow line: pressed frame and MDF
(intermediate product); - Green line: veneer gluing process; - Red line: further operations from intermediate
product to final product.

It can be seen, that there is an even flow of materials for standard door production. Also, line
balancing should be done to reduce unnecessary material storage as more as possible. Company, also,
should reconsider to eliminate some products which do not add any value from their production and

35
focus more on standard door production. It is very difficult for company to have fully automated door
production line because the orders are very individual, and it consumes a lot of time. In Appendix 4
Flow Process chart was used for determination approx. distance between equipment. Actions of
transportation decreased from 21 (defined in Appendix 2) to 18.

Evaluation of percentage of distance between equipment:

Decrease = 3551 m – 3283 m
% decrease = 268 m / 3551 m x 100 %
Distance reduction would increase by 7,5 %.

3.2. Equipment selection

It is proposed to leave the same machines for Cutting, Pressing, Sewing, Edge Banding and CNC
centres because it is suitable for operations and are not amortized enough in order to be changed.
Also, fixed amount of rejects is related when hand tools were used for example to cut raw material
into bushes etc.

3.2.1. Suggestions for Finishing line

The most problematic section which contain 85% of all rejects is Finishing line (from Sanding to
Drying operations). In order to reduce reject number from the perspective of human factor it is
proposed to install semi-automated finishing line which consists of 2 connected machines: 2 sanding
machine, 2 coating/painting machines, 2 drying machines. Recommended properties are described
below in Table 6 [29] [30] [31] [32].

Table 6. Properties of machines

Machine Brand Properties Price range acc. to
purpose name manufacturer, Eur

Sanding HiCas Cast iron elevator guide, Electric lifting system, Independent dust 20.000,00-100.000,00
removal, shock structure, feed speed 2,5-12,5 m/min
Painting Pilot Rotary double-position feeding, and automatic turnover 22.000,00-230.000,00
mechanism are provided. Reduce the time of working procedure
and increase efficiency. Only two operators are enough to
complete the whole procedure, with output per shift up to 160-240
wood doors. Spray gun movement route is under computer precise
control. It ensures precise spray and dyes saving. Simplified
clamps are provided and there is no need to change the current
working procedure. Spray guns are isolated and its effectively
guarantee operators' health. Example is depicted in Fig. 26.
Drying LJMachine Transportation line is with door brackets for 2-sided drying. 25.000,00- 250.000,00
It dries immediately, reduces time of waiting for drying and
coating. It dries six sides for one time. The height and angle of the
lamp in both sides can be adjusted for many sizes of products. The
whole machine is adopted by electrostatic coating which is anti-
corrosion and easy to clean. The part of electrical control has high
sensitivity and prolonged durability. The conveyor with stainless
steel net-style. The machine is designed with non-dust filtrate.
Wind cycle cooling system is more useful for lowering the
temperature for UV area, reduces dust at the same time.

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Fig. 26 Example of painting machine

There is a lot of different versions and brands of these machines. Asian market is cheaper than
European. Decision of investment in machines depends on company`s managers. According to
analysed data of few manufacturers like Burkle, Homag, Doscornio, Aagaard-Finnrose, they can
adjust machines acc. to client`s requirements. Average time to paint, dry, sand and again to paint and
dry door would take approx. 15-17 minutes when comparing to current time it takes 630 minutes
(current times of Sanding – 5 min., Priming – 5 min., Drying – 120 min., Sanding – 15 min., Painting
– 5 min. and Drying – 480 min. operations are defined in Appendix 1).

Evaluation of percentage of time decrease in finishing line operations:

Decrease = 630 min. – 17 min.
% decrease = 613 min. / 630 min. x 100 %
Time reduction of finishing line would increase by 97%.

Considering only operations of finishing line, the total door production time could be decreased from
15 h 15 min to 5 h 02 min. (915 min – 630 min + 17 min). The time reduction could be bigger if the
assessment of transportation time would be done. Time reduction of total door production line would
increase by 67%.

Decrease = 915 min. – 302 min. (15 h 15 min – 5 h 02 min)

% decrease = 613 min. / 915 min. x 100 %
Time reduction of finishing line would increase by 67%.

Real time reduction could be evaluated if the line balancing would be done for door production line.

3.3. 5S application, Visual management, Flow chart and dust prevention

As it was mentioned before, Company X has a big dust problem not only in the main production area
but also in painting, drying sections, on the constructions of building, on the floor and machines. It
creates bad quality and poor first impression when company tries to find new clients. Company have
installed special dust removal machines which are the part of Cutting centre, CNC, sanding machines
(Fig. 27) but it seems that it is not enough for cleaner environment. Wooden wastes after hand tools
operations, especially for sanding and cutting operations, are cleaned by simple broom. Sweeping
dust rises into the air and settles on the products, machines, construction elements or enters drying
and painting area. For that reason, it is recommended to acquire industrial vacuum, example is
depicted in Fig. 27. The price range 1.200,00 – 2.600,00 Eur [33]. To prevent dust, wooden wastes
should be cleaned several times a day.

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Fig. 27 On the left: Dust removal machine; On the right: Special wood dust vacuum [33]

Company X tried to implement one of Lean tools – 5S that would help labour to have better conditions
and would increase productivity but somehow implementation and efforts to continue this have
stopped. As it can be seen from below Fig. 28, company tries to work clean, some tools have their
own place, anyway there are points and places that can be improved and it could be recommended to
continue implement 5S tool by the initiative of employees, to have 5S evolution like continuously
improvement of work environment and after achieved good results workers could get bonuses. It
would increase employee’s motivation to work qualitatively and safer.

a) b) c)

d) e) f)

Fig. 28 Shop floor environment. a) – CNC area, b) – hand tools for sanding, c) – hand spraying workstation,
d) – storage-press machine-various tool area, e) – cleaning tools in painting/drying areas, f) – drying area.

During the Company`s observation it was noticed that intermediate products, raw materials were
stored on pallets without any card which should indicate for which order it belongs, for which

38
operation it is prepared. Visual management can be applied not only for standard door production but
for all products in order to avoid product losses in production area and reduce manufacturing time. It
is recommended to apply Visual management tool for veneer gluing by arranging it on different
colour of pallets, where different types of veneer are used. Especially it would be useful for new
employees, that they would easier recognize what type of veneer should be used for operation. The
same could be used in Cutting centre where frames and MDF would be stored for operation.

Fig. 29 Veneer identification through Visual management.

In Fig. 29 example of Veneer identification is depicted. Currently, Walnut, Oak, Ash, Birch and
Maple materials are used for door production.

Another tool which would improve production quality is Flow chart method. It could be used as help
for employees to prepare materials, machines for operations. This kind of tool could be used as step
by step guide. It is fully understandable that employees should have enough knowledge for processes,
they should process a lot of information and for that reason, this tool could be appropriate. For
example, Veneer gluing process in Appendix 5, Flow chart is made as process guide to complete the
operation. It guides step by step to have necessary amount of veneer, to assure what type of veneer
will be glued, it is also guiding to choose proper glue or even describe steps how to prepare glue.
Especially, this kind of tool could be used in sanding operations, spraying operations etc. where hand
tools are used. That would help to reduce number of rejects.

39
4. Economical evaluation

According to given balance sheet in Table 7, company`s values of cost of revenue are huge. It means
that company spends a lot to manufacture a product. These expanses consist of made rejects, material
is used irresponsibly, cost of material etc. It is proposed to invest into door production line. Currently,
operations of door finishing in factory take a lot of time to prepare final product. In new line it is
proposed to buy a new equipment and machines, like new 2-side sanding machines, 2 painting
machines and 2 UV drying machines which will be used for door finishing line. According to
currently production line, finishing operations are most unprofitable. Acc. to discovered data from
manufacturers regarding price of equipment, it is roughly assumed that total project price (taken
average equipment cost) with new equipment installation would be 647.000,00 Eur. Renewed
production line in company could enlarge quantity of orders.

The project ratios are based on all production volume (incl. all types of doors and furniture).

Table 7. Company`s Income data of 2016, 2017 and 2018 years

2016 2017 2018
Revenue 2,811,619.00 3,240,566.00 3,955,177.00
Cost of revenue -2,067,949.00 -2,303,608.00 -2,670,295.00
Gross profit 743,670.00 936,958.00 1,284,882.00
Operating expenses -40,851.00 -51,469.00 -1,194,536.00
General and administration costs -604,495.00 -811,682.00
Other operating income 660.00
Operating Income or Losses 98,324.00 74,467.00 90,346.00
Interest expenses -66,847.00 -5,071.00 953.00
Pre-tax Income 31,477.00 69,396.00 91,299.00
Income Tax Expense -4,322.00 -14,067.00
Net Income/Net Profit 27,155.00 55,329.00 91,299.00

Table 8. Company`s Balance sheet of 2016, 2017 and 2018 years.

2016 2017 2018

Assets
+ Cash & Near Cash Items 112,148.00 192,537.00 99,114.00
+ Accounts & Notes Receivable 579,958.00 525,703.00 518,427.00
+ Inventories 149,008.00 227,116.00 261,754.00
+ Other Current Assets 4,000.00 8,044.00 6,087.00
Total Current Assets 841,114.00 945,356.00 885,202.00
Tangible assets 258,128.00 234,970.00 252,326.00
Intangible Assets 232.00 1.00 8,587.00
Total Long-Term Assets 258,360.00 234,971.00 260,912.00
Total Assets 1,103,474.00 1,188,371.00 1,146,114.00
Liabilities & Shareholders' Equity

40
Total Current Liabilities 497,337.00 562,874.00 499,014.00
Total Long-Term Liabilities 70,000.00 47,353.00
Total Liabilities 567,337.00 610,227.00 499,014.00
+ Subsidies 39,968.00 26,646.00 4,305.00
+ Share Capital & APIC 26,341.00 26,341.00 26,341.00
+ Reserves 436,232.00 436,232.00 436,232.00
+ Retained Earnings & Other Equity 88,925.00 33,596.00 180,223.00
Total Equity 496,169.00 551,498.00 642,796.00
Total Liabilities & Equity 1,103,474.00 1,188,371.00 1,146,114.00

In order to evaluate investment payback period, ROA must be calculated. This ratio shows how
Company X profitable is comperative to its assets.

Return on assets (ROA) formula:

𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
𝑅𝑂𝐴 =
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
27115,00 𝐸𝑢𝑟
𝑅𝑂𝐴2016 = = 2,45%
1103474,00 𝐸𝑢𝑟

Table 9. Profitability ratio evaluation of 2016, 2017 and 2018 years.

Profitability ratio
2016 2017 2018
Return on assets 2,45% 4,65% 7,96%

Return on assets was lowest in 2016 and increased every year by approx. 3%. ROA means that from
1 euro invested in assets it gave only 2,45 cents. The biggest ratio was in 2018, it was 4 times higher,
from 1 euro it gave 7,96 cents.

In order to calculate what would be payback period for Company, it is needed to calculate Cash Flow
and Depreciation ratios.

Table 10. Project Cash Flow forecasting

YEAR CF ∑CF
0 -647.000,00 -
1 180.901,20 180.901,20
2 180.901,20 361.802,40
3 180.901,20 542.703,60
4 180.901,20 723.604,80
5 180.901,20 904.506,00

41
Table 11. Extra information for Cash Flow forecasting
Investment 647.000,00 euro
Depreciation 129.400,00 euro
CF 180.901,20 euro

𝐷𝑒𝑝𝑟𝑖𝑐𝑖𝑎𝑡𝑖𝑜𝑛 = 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡/5
647.000,00
𝐷𝑒𝑝𝑟𝑖𝑐𝑖𝑎𝑡𝑖𝑜𝑛 = = 129.400,00 𝑒𝑢𝑟𝑜
5

𝐶𝐹 = 𝐷𝑒𝑝𝑟𝑖𝑐𝑖𝑎𝑡𝑖𝑜𝑛 + 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 × 𝑅𝑂𝐴2018

𝐶𝐹 = 129.400,00 + 647.000,00 × 7,96% = 180.901,20 𝑒𝑢𝑟𝑜

It is assumed that cash flow will be the same through the 5 years period.

Table 12. Investment payback period

Investment payback period 3.57 years

647.000,00 − 542.703,60
𝑃𝐵 = 3 +
180.901,20

As a conclusion it can be said that if the company would have the same Cash Flow through 5 years
period, the investment would pay back in 3,57 years.

42
Conclusions

1. Technological line of standard door production was analysed by applying Quality Control Tools
(Pareto analysis, Flow Process chart, Ishikawa diagram, 5 Why method, Spaghetti diagram). After
analysis it can be seen that equipment are set out without order in different locations of production
area, there is no one-flow technological line. Average monthly demand of door production is 300
units. To produce 1 unit takes 15 h 55 minutes. Main and most problematic sections are Dyeing
(40 % of all rejects), Smoothing (25 % of all rejects) and Drying (20 % of all rejects). Mostly
rejects appear due to manual work, excessive material-workers movement, unregulated air flow
and dust.
2. It was proposed to change the layout of the technology line, i.e. create a door production bar.
Restructure would help to reduce storage in the production area, reduce total distance of material
flow (by 7,5%), reduce total door production time (by 67%). Secondly, it was proposed to apply
the Flow Chart tool to workstations in order to simplify performance of manual operations.
Moreover, it was proposed to apply the Visual Management tool to sort the required materials for
operations or intermediate products according to orders. For dust prevention, it was suggested not
to collect dust with the broom but to purchase special vacuums designed for the wood industry.
Dust collection with the broom carries dust throughout the production area and enters the painting
or drying sections.
3. Based on the new technology line layout, 6 machines were offered to be purchased: 2 dyeing, 2
drying and 2 sanding in order to reduce manual work and possible rejects. Average time to do
finishing operations would take approx. 15–17 minutes when comparing to current time it takes
630 minutes. Time reduction of finishing line operations would increase by 97%. The investment
would cost approximately 647 thousand Eur that could be paid back by the company in 3.57 years
(evaluation was made based on financial indicators of company`s total production).

43
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45
Appendices

Appendix 1. Flow process chart for current door production technological line

Location: Company X Summary

Activity: Door production Event Present
Preparation 3
Date: - Operation 24
Transportation 21
Remarks: For flow process chart average time of each action was taken Delay 0

Inspection 1
Storage 2
Time (min) approx. 15 h 15 min
Distance (m) approx. 3551
Cost
Event Description Symbol Time (min) Distance (m) Method Recommendation
Transport raw material to the saw - 0
machine tool
Cutting wood boards to sticks 15 -
Move sticks to the transverse 20
cutting machine tool 2
Branch cutting 10 -
Move sticks to the tile and planing 10
machine tools 2
Tile and planing of door panel and -
door frame 35

46
Carry parts to the worktable 2 10
Frame assembling of door panel -
and door frame 8
Load frames of door panels and -
door frames to the truck 15
Transport frames to warehouse at 3000
main factory 15
Unload frames in warehouse 15 -
Storage unknown -
Move frames from warehouse to 40
the press centre 5
Take MDF plate from warehouse 25
and move to Cutting centre 5
Setup Cutting centre 2 -
MDF plate cutting 3 -
Move cut plate to press centre 2 20
Setup Press centre 5
MDF plate gluing on frame 8
Move veneer from warehouse to 50
guillotine 5
Veneer sawing 5 -
Move sawed veneer to sewing 2
machine 2
Veneer sewing 15 -
Move sewed veneer to the press 8
centre 2
Veneer gluing on frame with MDF 15 -

47
Move intermediate product to CNC 8
centre 3
CNC preparation, setup, program 5 -
Door sawing according to exact -
dimensions, cutting locks, holes 5
Carry door to the Edge Banding 6
centre 2
Gluing edges -
9
Transport door to the sanding 70
machine tool 5
Surface sanding 5 -
Move intermediate product to the 45
spraying area 4
Staining, priming with hand tools 4 -
Drying 120 -
Move intermediate products to 45
preparation before spraying area 5
Brushing with hand tools 15 -
Transport door to the spraying 40
room 5
Spraying 5 -
Move door to the drying area 2 10
Drying process 480 -
Move door to the assembling area 30
2
Put door on worktable 1 -
Quality inspection 5 -

48
Assembling 20 -
Move door in packing area 1 2
Storing assembled door unknown -
Packing 10
Transport door to warehouse 4 110
Load the cargo -
-
Shipment - -

49
PRODUCED BY AN AUTODESK STUDENT VERSION
12900

Appendix 2

102000
44000

24000

PRODUCED BY AN AUTODESK STUDENT VERSION

PRODUCED BY AN AUTODESK STUDENT VERSION

Saw

Machine tools
Dust removal

CNC centre
CNC centre

Press centre

Machine
tools
Cutting
centre

Dust removal
Machine
tools
Spraying wall Spraying wall
Veneer sewing

Machine tools
Edge Banding centre

Machine
Guillotine

tools
Machine tools

Spray
room

Machine
tools
Machine
tools
Dust removal

Machine

Machine
tools
tools

Machine
Drying area

tools

54000
Machine
tools

Machine
tools

Machine
tools

Machine
Sanding centre Sanding centre tools
Sanding Press
centre

Spraying wall
Sanding
centre

MAKOR
dyeing
equipment Dust removal

Preparation
before
painting

Boiler house

66000

PRODUCED BY AN AUTODESK STUDENT VERSION

12000 PRODUCED BY AN AUTODESK STUDENT VERSION

Appendix 3

20000
102000
Packing area
Assembly area

MDF MDF MDF MDF MDF MDF

Warehouse 3

Lading location
Finished Frames Frames Frames Frames Frames Frames
product
Drying machine
Warehouse 2

Dyeing machine

PRODUCED BY AN AUTODESK STUDENT VERSION

PRODUCED BY AN AUTODESK STUDENT VERSION

Sanding
MDF MDF MDF MDF MDF MDF
machine

Drying Warehouse 1
machine

Frames Frames Frames

Dyeing
machine
Dust remover

CNC
Dust remover

centre Arrival of cut off MDF

Press center
98000

Preparation
before
painting Cutting

Storage
centre

Dust remover
Press centre

CNC centre
Sanding centre
Edge Banding centre

Spraying wall Spraying wall

Machine
tools
Machine tools
Machine tools

Spray
room Guillotine
Veneer sewing

Machine
tools
Machine
tools
Dust removal

Machine
Machine

tools
tools

Machine
Drying area

tools

54000
Machine
tools

Machine
tools

Machine
Assembling/Packing area tools

Machine
Sanding tools
Sanding centre
centre

Spraying wall
Sanding centre

MAKOR
spraying
equipment Dust removal

Preparation
before
painting

Offices and conference Boiler house

place

66000 PRODUCED BY AN AUTODESK STUDENT VERSION

Appendix 4. Flow Process Chart for distance evaluation of proposed door production technological line between equipment

Location: Company X Summary

Activity: Door production Event Proposed
Preparation 3
Date: - Operation 24
Transportation 18
Remarks: approx. distance between equipment was taken Delay 0

Inspection 1
Storage 1

Distance (m) approx. 3283 m

Cost
Event Description Symbol Distance (m) Method Recommendation
Transport raw material to the saw 0
machine tool
Cutting wood boards to sticks -
Move sticks to the transverse 20
cutting machine tool
Branch cutting -
Move sticks to the tile and planing 10
machine tools
Tile and planing of door panel and -
door frame
Carry parts to the worktable 10

50
Frame assembling of door panel -
and door frame
Load frames of door panels and -
door frames to the truck
Transport frames to warehouse at 3000
main factory
Unload frames in warehouse -
Storage -
Move frames from warehouse to 46
the press centre
Take MDF plate from warehouse 45
and move to Cutting centre
Setup Cutting centre -
MDF plate cutting -
Transfer cut plate to press centre 12
Setup Press centre
MDF plate gluing on frame
Transport veneer from warehouse 62
to guillotine
Veneer sawing -
Move sawed veneer to sewing 2
machine
Veneer sewing -
Move sewed veneer to the press 6
centre
Veneer gluing on frame with MDF -
Move intermediate product to CNC 10
centre

51
CNC preparation, setup, program -
Door sawing according to exact -
dimensions, cutting locks, holes
Carry door to the Edge Banding 6
centre
Gluing edges -

Transport door to the sanding 2

machine tool
Surface sanding -
Move intermediate product to the 14
finishing line
Priming -
Drying -
Sanding -
Painting -
Drying -
Move door to the assembling area 8

Put door on worktable -

Quality inspection -
Assembling -
Move door in packing area 8
Packing
Transport door to finished product 22
storage

52
Load the cargo -

Shipment -

53
Appendix 5. Designed Flow chart for Veneer gluing at Press workstation

54