IMPLEMENTATION OF LEAN MANUFACTURING SYSTEM (LMS) IN MALAYSIA TRADITIONAL

MEDICINES AND HEALTH SUPPLEMENTS INDUSTRY WITH DEVELOPMENT OF QUALITY INSPECTION POINT

BY

KHAIRUS SYAKIRAH BINTI MAHMUD

A dissertation submitted in fulfillment of the requirement for the degree of Masters of Science (Manufacturing

Engineering)

Kulliyyah of Engineering International Islamic University Malaysia

SEPTEMBER 2018

ii

ABSTRACT

Lean manufacturing system (LMS) is a term which is related to manufacturing industry. It means to take away all the unnecessary processes, stages, steps and resources in manufacturing. It is a process that helps the industry to make the production more economical. In the heavy industries such as automotive, steel etc. the lean manufacturing are Omni-present due to ease of implementation. However, industries that relates with medicine and food have not yet adopted the lean manufacturing properly. In these industries the recycle of the product has been strictly controlled by government organizations. To follow their regulation, the implementation of lean manufacturing becomes very difficult due to the material reuse issue concerning hygiene. Sometimes due to less supervision in the beginning of the production process causes problems in the final stages. So, a concern must be put in the early stages of production. Implementation of lean manufacturing in the early stages of pharmaceutical is one of the solutions to deal with this problem. In this thesis, lean manufacturing process both for human and computer vision has been applied in the health and traditional medicine factory to eliminate the unnecessary processes in the factory. For human vision, a new quality inspection point has been designed that comprise a table, two lights and a chair where the workers have inspected the capsules. The light intensity and the response time have also been recorded to find the optimum values. Too bright or too low light has given the workers difficulties to inspect the provided capsules. The suitable light intensity has been found at 468 lux and positioned at the middle of any inspection room. The computer vision has been functioned by using the images of the capsules. The process was done by image processing and edge detection algorithm in Matlab. During this process, all the good capsules were successfully detected through edge detection.

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خلاصة البحث

التخلص بمجال التصنیع. یعني ھذا یرتبط مصطلح ھو) LMS( الخالي من الھدر التصنیع نظام عملیة التصنیع. إنھا في الضروریة غیر والموارد والخطوات والمراحل العملیات جمیع من

الصناعات منتشر في الخالي من الھدر اقتصادا. التصنیع أكثر الإنتاج جعل على الصناعة تساعد الصناعات لم تتبنى ذلك، التنفیذ. مع سھولة بسبب ذلك، إلى وما والصلب السیارات مثل الثقیلة

إعادة صحیح. تخضع بشكل الخالي من الھدر حتى الآن التصنیع والطعام بالطب علاقة لھا التي قوانینھم، الحكومیة. لاتباع المنظمات قبل من صارمة لرقابة الصناعات ھذه المنتج في تدویر المتعلقة المواد استخدام إعادة مشكلة بسبب جدا صعبا الخالي من الھدر التصنیع تنفیذ یصبح

بدایة في الإشراف انخفاض بسبب حیانالأ بعض النھائیة في المراحل في مشاكل یحدث .بالنظافةالخالي التصنیع تنفیذ .الإنتاج من الأولى یكون الاھتمام في المراحل أن یجب لذلك، الإنتاج. عملیة

المشكلة. في ھذه مع للتعامل الحلول أحد ھو صناعة الأدویة من الأولى المراحل في من الھدر مصنع في والحاسوب البشریة للرؤیة الخالي من الھدر التصنیع عملیة تطبیق تم الأطروحة، ھذه

للرؤیة المصنع. بالنسبة في الضروریة غیر العملیات من للتخلص التقلیدي والطب الصحة قام حیث وكرسي الأضواء من اثنین طاولة، تضم للجودة جدیدة تفتیش نقطة صممت البشریة،

القیم لإیجاد الاستجابة وزمن الضوء شدة تسجیل النقطة. تم الكبسولات عند ھذه بفحص العمال .المقدمة الكبسولات لفحص للعمال صعوبات جدا المنخفض أو جدا الساطع الضوء المثلى. أعطى

تفتیش. استخدمت غرفة أي منتصف في وموضعة لكس 468 عند المناسبة الضوء شدة على عثر الصور معالجة خلال من العملیة تنفیذ الكبسولات. تم صور استعمالعن طریق الحاسوب رؤیة

الكبسولات جمیع عن كشف العملیة، ھذه . خلالMatlabفي برنامج الحواف كشف وخوارزمیة الحواف. كشف خلال من بنجاح الجیدة

ABSTRACT IN ARABIC

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APPROVAL PAGE

I certify that I have supervised and read this study and that in my opinion, it conforms to acceptable standards of scholarly presentation and is fully adequate, in scope and quality, as a thesis for the degree of Master of Science in Manufacturing

………………………………….. Dr. Irfan Hilmy Supervisor

………………………………….. Prof. Md. Yusof Bin Ismail Co-Supervisor

I certify that I have read this study and that in my opinion it conforms to acceptable standards of scholarly presentation and is fully adequate, in scope and quality, as a thesis for the degree of Master of Science in Manufacturing

………………………………….. Dr. Suhaily Binti Mokhtar Internal Examiner

………………………………….. Dr. Tasnim Firdaus Binti Mohamed Ariff Internal Examiner

This thesis was submitted to the Department of Material and Manufacturing Engineering (MME) and is accepted as a fulfillment of the requirement for the degree of Master of Science in Manufacturing

………………………………….. Dr. Mohamed Bin Abd. Rahman Head, Department of Material and Manufacturing Engineering (MME)

This thesis was submitted to the Kulliyyah of Engineering and is accepted as a fulfilment of the requirement for the degree of Master of Science in Manufacturing

………………………………….. Prof. Dr. Erry Yulian T. Adesta Dean, Kulliyyah of Pharmacy

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DECLARATION

I hereby declare that this dissertation is the result of my own investigations, except

where otherwise stated. I also declare that it has not been previously or concurrently

submitted as a whole for any other degrees at IIUM or other institutions.

KHAIRUS SYAKIRAH BINTI MAHMUD

Signature ........................................................... Date .........................................

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INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

DECLARATION OF COPYRIGHT AND AFFIRMATION OF FAIR USE OF UNPUBLISHED RESEARCH

IMPLEMENTATION OF (LMS) IN MALAYSIA TRADITIONAL MEDICINES AND HEALTH SUPPLEMENTS INDUSTRY WITH

DEVELOPMENT OF QUALITY INSPECTION POINT

I declare that the copyright holders of this dissertation are jointly owned by the student and IIUM.

Copyright © 2018 KHAIRUS SYAKIRAH BINTI MAHMUD and International Islamic University

Malaysia. All rights reserved.

No part of this unpublished research may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of the copyright holder except as provided below

1. Any material contained in or derived from this unpublished research may be used by others in their writing with due acknowledgement.

2. IIUM or its library will have the right to make and transmit copies (print

or electronic) for institutional and academic purposes.

3. The IIUM library will have the right to make, store in a retrieved system and supply copies of this unpublished research if requested by other universities and research libraries.

By signing this form, I acknowledged that I have read and understand the IIUM Intellectual Property Right and Commercialization policy.

Affirmed by KHAIRUS SYAKIRAH BINTI MAHMUD ……..…………………….. ……………………….. Signature Date

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ACKNOWLEDGEMENTS

Firstly, it is my utmost pleasure to dedicate this work to my dear parents and my family, who granted me the gift of their unwavering belief in my ability to accomplish this goal: thank you for your support and patience.

I wish to express my appreciation and thanks to those who provided their time, effort and support for this project. To the members of my dissertation committee, thank you for sticking with me.

Finally, a special thanks to Dr. Irfan Hilmy and Prof. Dr. Md Yusof Bin Ismail

for their continuous support, encouragement and leadership, and for that, I am forever grateful.

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TABLE OF CONTENTS

Abstract..................................................................................................................... iAbstract in Arabic..................................................................................................... iii Approval Page .......................................................................................................... ivDeclaration ................................................................................................................ v Acknowledgements ................................................................................................... vii Table of contents....................................................................................................... viii List of Tables ............................................................................................................ x List of Figures ........................................................................................................... xi

CHAPTER ONE: INTRODUCTION................................................................... 1 1.1 Background of the Study ......................................................................... 1 1.2 Problem Statement and Its Significance .................................................. 3 1.3 Research Objectives ................................................................................ 4 1.4 Research Questions.................................................................................. 5 1.5 Research Methodology ............................................................................ 5 1.6 Scope....................................................................................................... 7 1.7 Thesis Organization ................................................................................. 8 1.8 Definitions of Terms................................................................................ 8

CHAPTER TWO: LITERATURE REVIEW ..................................................... 10 2.1 Introduction .............................................................................................. 10 2.2 Lean Manufacturing System.................................................................... 10 2.3 Basic Principle of Lean Manufacturing System ...................................... 12 2.4 The Objectives of Lean Manufacturing Implementation ......................... 13

2.4.1 Quality ............................................................................................ 13 2.4.2 Cost ............................................................................................... 14 2.4.3 Time ............................................................................................... 14

2.5 Elements of Lean Manufacturing System ............................................... 15 2.5.1 PDCA Cycle .................................................................................. 17 2.5.2 Value Stream Mapping (VSM) ..................................................... 20 2.5.3 5S Workstation Productivity .......................................................... 21 2.5.4 Dealing with the Seven Deadly Wastes ........................................ 23 2.5.5 The Kaizen Way ............................................................................ 25 2.5.6 Total Productive Maintenance ....................................................... 27

2.6 Good Manufacturing Process for Traditional Medicines and Health Supplements............................................................................................. 28

2.7 Development of Quality Inspection Point ............................................... 30 2.8 Image Processing by Matlab ................................................................... 31 2.9 Chapter Summary .................................................................................... 34

CHAPTER THREE: METHODOLOGY............................................................. 35 3.1 Introduction .............................................................................................. 35 3.2 PDCA Analysis ........................................................................................ 37 3.3 Value Stream Mapping ............................................................................ 37 3.4 Design and Fabricate the Quality Inspection Point ................................. 37

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3.5 Installation of Quality Inspection Point................................................... 38 3.5.1 Data Collection............................................................................... 38 3.5.2 Measuring Light Intensity .............................................................. 39 3.5.3 Initial Data Collection .................................................................... 39

3.5.3.1 Time................................................................................... 39 3.5.3.2 Light intensity .................................................................... 40

3.5.4 Final Data Collection ..................................................................... 40 3.5.5 Image Capturing for Matlab .......................................................... 41

3.5.5.1 Image Processing Toolbox ................................................ 41 3.6 Chapter Summary .................................................................................... 42

CHAPTER FOUR: RESULTS AND DISCUSSION .......................................... 44 4.1 Introduction .............................................................................................. 44 4.2 PDCA Analysis ........................................................................................ 44 4.3 Value Stream Mapping ............................................................................ 49

4.3.1 Identify Material Flow................................................................... 49 4.3.2 Identify Possible Improvement ...................................................... 51

4.4 Quality Inspection Process...................................................................... 52 4.5 Data Collection ........................................................................................ 53 4.6 Inspection with computer vision .............................................................. 57 4.7 Chapter Summary .................................................................................... 58

CHAPTER FIVE : CONCLUSION AND RECOMMENDATION ................. 59 5.1 Conclusion ............................................................................................... 59 5.2 Future Recommendations ........................................................................ 60

REFERENCES ...................................................................................................... 61

LIST OF PUBLICATION..................................................................................... 64

APPENDIX A ........................................................................................................ 65

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LIST OF TABLES

Table 2.1 Japanese words and the meaning 21

Table 4.1 Solution Summary 46

Table 4.2 Planning Steps 46

Table 4.3 Comparison of light intensity 47

Table 4.4 Investment category 49

Table 4.5 Time count of different workers 52

Table 4.6 Lux intensity measurement in different room 54

Table 4.7 Simulation by human vision 56

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LIST OF FIGURES

Figure 1.1 : PDCA Cycle 6

Figure 2.1 : PDCA Cycle application to control and continual improvement 18

Figure 3.1 The methodology flow chart 36

Figure 3.2 Proposed inspection table 38

Figure 3.3 Inspection in initial condition 39

Figure 3.4 Inspection in final condition 40

Figure 3.5 Flow of the image detection technique 42

Figure 4.1 Lamp reflector sketch 48

Figure 4.2 VSM current state 50

Figure 4.3 VSM future state 51

Figure 4.4 The (a) close-up and (b) top view of 10 samples 53

Figure 4.5 Layout of the factory X 54

Figure 4.6 Output of different stage using edge detection algorithm 57

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LIST OF ABBREVIATIONS

LMS Lean Manufacturing System

TPS Toyota Productive System

SMED Single-minute Exchange of Die

GMP Good Manufacturing Practice

PDCA The Plan, Do, Check and Act

VSM Value Stream Mapping

SME Small and Medium Enterprise

TPM Total Productive Maintenance

OEE Overall Equipment Effectiveness

cGMP Current Good Manufacturing Practice

NPCB National Pharmaceutical Control Bureau

GUI Graphical User Interface

ROI Return of Investment

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CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Lean Manufacturing System (LMS) is a leading manufacturing paradigm. It has been

used as the method of minimizing the inventories of raw material, work-in-progress

and finished goods in achieving the production goals. The systematic elimination of

waste in all forms is focused in the production. There are many type of waste that can

be divided in term of saving time and cost for example in rework, material movement

and overproduction (Begam et al., 2014). In manufacturing, raw material wastage is

strictly prohibited because it leads to loss for the company. Other than that, the cost of

the product increases because of the high cost during processing the product (Porter,

2014). Throughout the years, LMS is recognized as one of the most powerful

production system ever created. LMS is originated from Toyota which is a well-

known car manufacturer (Kumar, Kumar, Singh, & Theraja, 2015). LMS has been

applied in the production of the Toyota car called Toyota Productive System (TPS).

Moreover, the application has been used for the large-scale production and being

adapted around the world due to the very good feedbacks and performances (Hartini,

2015). LMS is also a substitute to the traditional mass production. The traditional

mass production is a system works based on the large scale of production volumes

with limited materials to low the product cost. Meanwhile, the LMS worked based on

large varieties of production with high quality material for example new technology

machine. At the same time, the flexibility and continuous learning organization is

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available and applicable. Moreover, the multi-skilled worker has been motivated in all

aspect and level for example in time management skills (Edwards, 2014).

There are many forms of the LMS that help in increasing quality, reducing cost

and saving the time. The form can be categorized in providing a quality management,

just in time production, eliminating waste and continuous improvement. The form is

consist of the value stream mapping, Kanri (2001) indulged in planning, dealing with

the seven deadly wastes, workstation productivity, standard work, leader standard

work, practical problem solving, seven quality control tools, the kaizen way, quick

changeover, the single-minute exchange of die (SMED) system and total productive

maintenance. On the other hand, the LMS can be implemented individually also. It

results the quality and cost improvement in management practices such as gradually

changing in continuous improvement. In Malaysia, the application and adaptation of

LMS is mostly in automotive, electric and electronic industries where the mass

production is crucial (Gobinath et al., 2015).

In this project, a research has been conducted that focuses on a Malaysian

traditional herb and health supplement industry. The reason of the research is mainly

on implementation of LMS in a Malaysian traditional herb and health supplement

industry that blends with good manufacturing practice (GMP) for traditional

medicines and health supplements. Thus, there is a need of investigating the current

implementation to recognize the current state of the Factory X. Furthermore, the

suitability of LMS that is necessary to be added can be implemented. Therefore, the

development of quality inspection point in the Factory X has been chosen as the case

study.

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National pharmaceutical control bureau, ministry of health Malaysia has monitored

the plan at plant of the Factory X in traditional medicines and health supplement

(Kongrerk, 2013). Moreover, the GMP requires following the guideline that has been

provided by the bureau. The requirement is found as one of the conditions to be

fulfilled in the evaluation of application for a Manufacturing License. Manufacture

defines as the making or assembling of the product. In addition, manufacturing

incorporates the enclosing or packaging of the product in container with labeling

which is used for the applications in administration.

1.2 PROBLEM STATEMENT AND ITS SIGNIFICANCE

This study is based on Malaysian traditional herb and health supplement industry of a

Factory X. Currently, the capsule produced is evaluated and inspected by utilizing the

human visual system. The quality of the capsule has been evaluated terms of the shape

and hygiene of the capsule to be consumed by the customer (World Health

Organization, 2000). Meanwhile, the production of the capsules and the quality check

process being done by the workers are in non-comfort workstation and involving of

bad postures. For the utilization of the human visual system, the quality-checking

process demands for a worker to remove any defective product. For instance, the total

amount of the capsule under inspection is 100000 which is sorted by the quality of

capsules. Then, a hundred capsules of good quality are separated and inserted into a

bottle.

This process required a long time to finish because it fully depends on human

checking and causes tiredness and fatigue eyes. Quality-check fully based on human-

vision system indicates that all the capsules are required to pass through the quality-

check process in the Factory X. However, the quality check process needs

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improvement especially for fast inspection and less tiredness and good postures.

Therefore, issues in the Factory X like poor human visual, poor workstation etc. have

been overcome by the development of the quality inspection point in the Factory X.

The quality-check process is done in the quality-check station that provides a good

position for the inspector to move on with the process. In terms of the operation of

human eyes, a poor human visual system is caused by two factors like physical

limitation and subjective judgment of the person responsible for visual inspection.

Here, the physical limitation is originated from the problems related to human eye

sight. On the other hand,, the subjective judgment of human relates to the skills of the

inspector based on his training and experiences. Meanwhile, the poor workstation is

related to the design of the quality inspection point for the worker to do the inspection.

It is necessary to the company to improve the quality checks process to deliver

a good and quality product to the customer efficiently. In the other hand, it is

important to the company to experience more efficient of the quality checking process

with finding the zero defects so as to fulfill the efficient quality checking process, the

development of quality inspection point believed to ensure the quality check process

improved with finding zero defects from the produced capsules. Thus, the rework time

can be eliminated that reduces the time to produce the finishing of products. In LMS,

the design of the quality-check station is a major concern for a factory with an

improved quality-check process.

1.3 RESEARCH OBJECTIVES

The study aimed to achieve the following objectives:

1) To investigate the factors affecting the inspector on capsule quality

inspection station in Factory X.

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2) To implement the quality inspection process by designing and

fabricating the quality inspection station in Factory X.

3) To analyse the positive impact of the implementation of the quality

inspection station on Factory X.

1.4 RESEARCH QUESTIONS

1. Does quality check point is currently available for the company in

producing capsule product?

2. What causes the non-conformance part in the capsule production?

3. Are the quality inspection points available in each of the production areas?

4. Is the low quality inspection leads to produce non-conformance product?

5. Is the inspector in the factory perceiving the utility of the quality

inspection point while doing inspection?

6. Do the inspector eyes require a good intensity of light in the factory?

7. Do tired eyes lead to low quality check?

1.5 RESEARCH METHODOLOGY

Firstly, in carrying out the lean manufacturing analysis, the selection of an appropriate

production line in Malaysian traditional herb and health supplement industry was

done. Next, the plan, do, check and act (PDCA) methods has been used to find the

solution of the problem. The PDCA cycle can be an effective and rapid method for

implementing continuous improvement (Weinstein and Vasocski, 2004). Moreover,

each step: Plan, Do, Check, and Act are critical for consistent implementation as

shown in Figure 1.1. This application has been adapted from the lean manufacturing

systems.

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Figure 1.1 : PDCA Cycle (Moen and Norman, 2006)

A thorough literature review on surveys and research work related to lean

manufacturing systems and good manufacturing practices is conducted to review the

current good manufacturing practices in Malaysian traditional herbs and health

supplement industry X. The attributes of the work are outlined in the following

paragraphs followed by a flowchart of the main methodology steps.

At the beginning, it is observed to identify the factor that influences the quality

process, for example, in capsule production. In LMS the application of value stream

mapping (VSM) is widely used in heavy industry for example in Perodua Sdn. Bhd.

The VSM has been created as a tool to overview the current state of the factory. In the

research, there is one specific room in the Factory X that has been chosen to be used

for the investigation. First and foremost, the identification of the factors that influence

the quality process in capsule production is obtained. In LMS, initial stages of the

process must be passed the quality identification process from the raw material until

finishing goods. Meanwhile, the Factory X applied the quality check process only to

Plan

Do

Check

Action

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produce capsules. Then, the capsules are preceded to the next process which is

packaging the capsules.

In order to fulfill the second objective, the duration taken for performing the

quality inspection process is recorded through video and observation from initial stage

until final stage for the capsule production in the Factory X.

Thirdly, the quality inspection point is developed to improve the quality check

process. Designing the quality inspection station requires consideration on ergonomic

part that is good for the posture of the inspector and active workstation. The design

consists of few matters that require considering the human visual inspection and the

position of the inspector during quality inspection process. It is noteworthy that the

light intensity matters on human visual inspection while the inspection is carried out

for a long duration. That’s how the third objective has been achieved. In the other

way, it also benefits the inspector for fast identification and inspection of the defects.

Next, after the implementation of the quality inspection point, the time to

perform quality inspection process of capsule after implementation will be measured

and recorded. It is done in such a way to analyze the effect of the quality inspection

point on the improvement of quality inspection process. In the analysis, the time will

be compared between the quality inspection process before and after the implementing

the quality inspection point.

1.6 SCOPE

1. The research is conducted in a small and medium enterprise (SME) company in

Malaysia.

2. The Factory X is a traditional medicines and health supplements industry.

3. The choice of the research based on the limitation of the company.

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4. Quality inspection point is required to improve the quality check process for the

Factory X benefit.

5. Experiments have been controlled by only checking the defects.

6. Experiments are carried out in a room where isolation is provided so that no

disturbance from contaminant, noise and dust is found.

1.7 THESIS ORGANIZATION

Chapter One provides the brief of the work through introducing the background

study, problem statement and its significance, research objectives, research questions,

research methodology, scope, thesis organisation and definition of terms.

Chapter Two summarizes a thorough literature review with the respect to the

problem statement. Most recent literatures have been reviewed and analysed is this

chapter.

Chapter Three summarizes the work flow, the procedure and the activities to achieve

the objectives of this thesis. Flow diagrams are constructed and explained; and

theories have been elaborated with the aim to achieve the goals of the research.

Chapter Four comprises the outcome of various stages of this thesis. All the results

are illustrated, explained and analysed here.

Chapter Five contains the summary and conclusion of the thesis and future

recommendations are also give in this chapter.

1.8 DEFINITIONS OF TERMS

Lean Manufacturing System

A system, that adapted from Japanese that being applied to reduce cost, save time and

improve productivity in a manufacturer company.

Good Manufacturing Practices

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Practices apply in maintaining the hygiene of the product during manufacturing

process.

Quality inspection point

A provided place in the production line which has been used for a quality inspection is

called quality inspection point. The station also provides the workstation that can give

the manpower to work with comfort.

Zero Defect

One of the goals in any production station which the defect acquired to be prevented

in any situation.

Fast inspection

It refers to save time in quality inspection. The fast inspection requires a good

workstation which also helps in order to make the inspection become fast.

Light intensity

The light intensity measurement that is detected by human eye is important. The

luminosity function brings standardized model of human visual brightness perception.

Reflection model describes the interaction of light with a surface. By using this

method, the light intensity can be improved.

Human visual inspection

The usage of human eyes to inspect the capsule called visual inspection.

Intention to Use Suitable Light Intensity

It refers to help the manpower eyes from tiredness. The tired eyes have erroneous

effects on the fast quality inspection.

Image processing

The static image has been used to perform a processing technique so that the details

like the number of the capsule can be counted, and defects can be detected.

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CHAPTER TWO

LITERATURE REVIEW

2.1 INTRODUCTION

Since the study is aimed in implementing of lean manufacturing system on the

traditional medicines and health supplements industry in Malaysia with development

of quality inspection point, it is of important to take a look on the lean manufacturing

systems in terms of its definition and importance. Furthermore, the review emphasizes

on lean manufacturing systems and development of quality inspection point from the

perspective of the systems, the importance of the quality inspection point and for the

inspectors. What should also be covered is the utilisation of light intensity and the

effects to the human visual inspection. Moreover, the ergonomic design for the

inspector in the workstation and the automatic system by using Matlab software.

2.2 LEAN MANUFACTURING SYSTEM

The LMS concept has been practiced in Japan by Toyota since the end of World War

II. The Toyoda family has been decided to change their business from automatic loom

manufacturing to automobile manufacturing (Ohno, 1988). Meanwhile, there was a

highly competitive environment in the foreign market due to other automotive

manufacturing company such as Ford. However, the family business survives are

mostly in the local market of Japan whereas the capital plays a very crucial role which

is mainly responsible for importing the raw materials first and then manufacturing the

materials in small batches. Therefore, the right-hand man named Dr. Shigeo Shingo

and Taiichi Ohno struggled through the obstacle by obstacle together to create a

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system. The system called Toyota Productive System (TPS) or as known as Just-in-

Time (Liker, 2006). It is a fact that the concept of TPS was pioneered in Japan. The establishment

root concept is believed to have started back in sixteenth century. The interchangeable

concept parts have been introduced by Eli Whitney which is the reason behind the

birth of TPS. The JIT system shows much resemblance that occurred a century later in

the Ford Model T (1910) production in automobile design. The line assembly is the

main line in the manufacturing process of the model. Each part has been set to be

moved continuously without any interruption to the next adding value steps. It is

called as continuous flow of the manufacturing and assembling process. As the result,

henry Ford successfully become the richest man at that time from the successfully

system that has been created and well function. However, the system found some

drawback which is lack in flexibility. The system inability to change occurred because

the push strategy being implemented in the system. The push system defines the

system is relying on the running busy machine without concerning the outcome of the

machine (Singh, 2013). So, the stock will be huge in amount in the form of in progress

or finished goods.

The lesson has been learned from the over stock experience. The Japanese had

studied more on identifying the problem and the solution for the system has come out.

Despite that, the pull system has been created to pull the former process. The system

has been improvised by the Ohno and Shingo as to keep the inventory well in the

company (Sugimori et al., 1977). The system developed in Toyota from 1949 to 1975

was virtually unnoticed by others even inside Japan until the oil crisis took place in

1973. The crisis had shaken the Japan’s economic stability and most of the industries

were closed yet Toyota had successfully overcome the crisis and stood out from the

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rest (PMP, 2008). Since then, the system has caught the attention of other firms in

Japan. In the western, this system started being popular after the book ‘The machine

that change the world’ written by James Womack published in 1990. The purpose of

this book is to expose the history of the automobile and the details of some of this

manufacturer’s plant. He gave the name; ‘Lean Manufacturing’ to this system.

Thereafter, the concepts were practiced all over the world.

2.3 BASIC PRINCIPLE OF LEAN MANUFACTURING SYSTEM

The product has been valued through the visual understanding of the customer which

means the scope has been decided by the customer. The LMS is required to fulfill the

customer needed in line with consideration of the technology that is used to

manufacture the product (Jones, 1992). Meanwhile, the customer is easily judging the

product based on the ability to visualize the product instead of considering the

technology used behind manufacturing the product. The customer unnecessarily to

think the cost of rejection parts in the production lines but the manufacturer needs to

think the price and the quality during the production running. Some customers are

willingly to pay high price for the product or service if their requirement and

expectation are fulfilled but some product and service can be considered as cost-

effective in the manufacturer minds. Also, the result is same as the requirement and

expectations are fulfilled to the customer (Hayes, 1994). The lean itself means slim or thin. The principle of LMS considers a good

quality product that been through the lean process starting from the raw material until

finish product because a good quality product is supposed to reduce the cost of

production. The quality inspection preservation, rejected part and part replacement are

costly. Therefore, the better the quality of the product the better cost saving can be