Sps ap05

Jurnal Teknologi, 54 (Sains & Kej.) Keluaran Khas, Jan. 2011: 1–12
© UNIVERSITI TEKNOLOGI MALAYSIA
AN IMPLEMENTATION OF SET PARTS SUPPLY SYSTEM
IN THE MALAYSIAN AUTOMOTIVE INDUSTRY

SUHARTINI MOHD JAINURY1
, RIZAUDDIN RAMLI2
,
MOHD NIZAM AB RAHMAN3
& AZHARI OMAR4

Abstract. The automotive manufacturers are facing a challenge in producing variety of products to
fulfill the customer demand. A large number of different types of parts forces manufacturers to
improve the method of supplying parts on the assembly line. This paper presented an innovation
system of supplying parts called Set Parts Supply (SPS) which has been implemented in a mixed-
model assembly line. The basic idea of SPS is the process of selection parts and assemble parts are
done by different operator at different area. This research is concentrated on the activities in SPS
implementation and the design consideration for the equipment through a case based approach.
After the implementation, it can be ascertained that the inventory has been reduced, the reduction
of waste can be achieved and the shop floor are well-organized.
Keywords: Set Parts Supply; kitting; material supply system;
assembly lines; Just In Time;
Abstract. Keadaan pasaran yang semakin sengit terhadap permintaan pelbagai variasi kereta
merupakan suatu cabaran bagi pengeluar kereta. Pelbagai jenis komponen dalam jumlah yang
besar mempengaruhi kaedah penghantaran barang ke baris pemasangan. Kajian ini
membentangkan suatu penambahbaikan yang dilakukan di baris pemasangan pelbagai model
dikenali sebagai sistem penghantaran komponen secara set. Secara umumnya, dalam sistem ini,
proses pemilihan dan pemasangan komponen dilakukan secara berasingan oleh operator yang
berbeza pada tempat yang berbeza. Kajian ini memfokuskan aktiviti semasa pelaksanaan sistem
serta kriteria yang diambilkira semasa merekabentuk kelengkapan yang diperlukan untuk sistem ini
melalui pendekatan kajian kes. Setelah sistem penghantaran komponen secara set ini dilaksanakan,
didapati ia dapat mengurangkan inventori, mengurangkan pembaziran dan menjadikan lantai
pengeluaran teratur.
Kata kunci: set komponen; sistem penghantaran barang; baris
pemasangan; Tepat Pada Masa;
1–3
Department of Mechanical & Materials Engineering, Faculty of Engineering & Built Environment,
Universiti Kebangsaan Malaysia, 43600, Bangi, Selangor, Malaysia
1
Department of Mechanical Engineering, Politeknik Sultan Azlan Shah, 35950 Behrang, Perak, Malaysia.
4
Department of Manufacturing Solution, GICT, PROTON, 40918 Shah Alam, Selangor,
Malaysia.
Corresponding author: 1
suhartini@psas.edu.my ; 2
rizauddin@vlsi.eng.ukm.my

1.0 INTRODUCTION
In the present scenario of highly demanding customers in the automotive sector,
production has become more complex, requiring system innovation and
technological integration to compete in the globalize markets. To meet the
demand for different models of vehicles with different variants and colours
consisting of different types of parts from the supplier such as a variety of
speakers, door locks and door handles, manufacturers are faced with the need to
effectively manage thousands of parts on the shop floor. The production needs to
be properly planned with the Just-In-Time practice. Otherwise, the final assembly
will run out of parts and the downtime will increase.
In order to cater for the fluctuating demand, manufacturers have to implement
innovation strategies for driving high performance in the assembly system. Thus,
within the constraints of an unpredictable situation, adapting Just-In-Time
becomes more challenging. This will also affect the method of supplying materials
and material handling on the assembly line [1-2]. The wide variety of parts also
causes an excessive inventory, limited storage space and a poor picking system [3].
To meet customer satisfaction, this pressure allows manufacturers to create an
innovation which in turn, improve production performance. As an example,
Toyota introduced a new system of supplying materials to the assembly line which
is called Set Parts Supply (SPS) which has been adopted in the Toyota Tsutsumi
plant in Japan [4].
1.1 Set Parts Supply (SPS) System
There are two main jobs in SPS, Erabitori and Kumitsuke [5]. The first job i.e.
Erabitori or selection is a process in which each part of the different models is
selected. The second job Kumitsuke or assembly is a process in which the parts
are assembled on the car body. The selection process is done by a shopping
operator in an area called the supermarket. The job focuses on the selection of the
needed parts, removing the unnecessary materials and placing the selected part on
the box. The box is then placed on the wagon and supplied to the assembly line.
The second job is done by an assembly operator at each workstation on the
assembly line. The assembly operator will pick up the parts one after another

from the box for the related assembly process and assembled them on the car
body.
In SPS implementation, the starting point of kanban is moved from the
assembly line to the supermarket area [5]. There is no kanban between the
assembly line and the supermarket. The job in the supermarket is synchronized
with the assembly line which is planned by the production planning department.
This means that there is no order for supplying parts from the assembly line to the
supermarket. The instruction to supply parts for the selection process also comes
from the management. Therefore the shopping operator will concentrate on the
selection process and the assembly operator will focus on assembling the parts.
This make it easy for the unskilled worker to understand and the time to train a
new assembly operator can also be reduced [6]. It seems that implementing SPS
requires more jobs to be done albeit with some additional labour cost.
SPS is also known as the kitting process in Swedish companies [7]; however
there are certain elements that make SPS different from kitting [8]. SPS and kitting
seem to be beneficial to solve space utilization and material handling problems but
the kitting process is less understood in terms of flexibility, quality and cognitive.
Wang et al. [9] found that SPS can eliminate 158 m2
of distribution area and save
about 96% for the logistic area at the line side assembly line. However, the
preparation for the kitting process needs more space and a temporary storage area
[10]. Kitting requires all the components or subassembly collections to be
completed before being delivered to the assembly line. Otherwise, kitting will lead
to poor quality and increase the lead times due to the rework process.
SPS is better than the traditional method because it can reduce the distance of
the parts supplied by three percent and the total time for part arrangement by four
percent [11]. Kitting also can be very useful to reduce the time spent searching for
parts and provides a quick response to quality control [12]. However, when
designing the system, the choice of design depends on the location of the selection
process, arrangement of parts on the component racks, material handling
equipment, layout design, and picking information system [13]. If the system is
designed properly, it will be an advantage for the assembly process performance or
else it will just increase the cost of investment [14]. In order to choose the
appropriate design system for the supply of materials to the assembly line, Caputo
and Pelagagge [3] suggested a methodology as an alternative to return the
investment of the manufacturer.

The raising in different models with huge variants will create a difficult
environment on the assembly line. SPS is one of the reasons to create a simple,
slim and easy system for materials supply. With the synchronized workstation and
balancing line, SPS implementation builds high quality into the product and is able
to create a better working environment. The other reason for introducing SPS to
the assembly line in Japan was the increase in the average age of assembly
operators [8]. Therefore, by replacing the ‘senior’ operators on the assembly line
and letting them select the parts, it is easier for them to focus on their job.
Moreover, assembly operators have to memorize many job processes each time a
different model arrives at the workstation. Therefore, the implementation of SPS
balances the job of selection and the assembly of parts.
To date, there have been very few studies of SPS in the literature. However
the existence of kitting is often discussed in the research on the implementation,
design, operation and evaluation as a method of material supply to the assembly
line[10, 13, 15]. Although, kitting has many uncertainties regarding the application
and design of the system, the research on kitting is wide spread. For that reason,
the exploration on SPS study is crucial to obtain a definitive picture of SPS. This
study discusses on how the implementation of SPS in the Malaysian automotive
industry. The study also focuses on the scenario before the implementation and
after the implementation of SPS. The phase of implementation and activities that
support the Just-In-Time practice will also discussed.
2.0 METHODOLOGY
The case study was conducted at Perusahaan Otomobil Nasional (Proton), leader
of Malaysian national car manufacturer which has produced over a dozen car
models since 1985. At Proton, mixed-model production is the practice where
different model and variant is produced on the same assembly line. In order to
gain multiple sources of data to triangulate the findings, one of the researchers was
attached to the Industrial Engineering Department for three months. The
information was gathered through the SPS project team members. The qualitative
data was collected through observations and interviews by attending the meetings,
discussions and fabrication works and were analyzed to achieve a deeper
understanding about the Set Part Supply. The documents included official

records, minutes of meetings, technical drawings and other related items which
were also examined to gain insights relevant to the research questions.
3.0 PHASE OF IMPLEMENTATION
The case study of SPS implementation was done at the door assembly line with an
area of approximately 812.5 m2
. There were eight workstations on both the left
and right side. The assembly line was about 22.5 m with sixteen assembly
operators. There were component racks alongside the assembly line on both
sides. The storage area was about 100 m2
which contained medium and small
parts, and the distance was 2 m from the right side component racks. There were
two ‘supply operator’ supplied parts to the storage area from the incoming station
and to the component racks at the line side from storage area. The Figure 1 below
shows the layout of the case study before the implementation of SPS.
Figure 1 Layout of the case study at door sub assembly line

Before implementation, the management found that a lot of waste arises when
the variety of parts was placed at the assembly line with the floor constraints. From
the interviews and observation, the waste has been defined and summarized in
Table 1.
Table 1 Identified waste in the case study
Type of waste Description Cause
Waiting Assembly operator had to wait for ‘supply
operator’ supply parts from storage area.
Assembly operator had to wait due to late
assembly of prior process.
Poor pull system
Excess workload
Unnecessary
transport
Forklift and towing truck moved along improper
route.
Poor layout
Excess inventory A lot of inventory at storage area and component
racks. It was like there were two storage areas.
Many poly boxes with parts on the shop floor
due to not enough space to locate. The shop
floor was congested, crowded and an unfriendly
environment to implement 5S.
Poor pull system
Poor workplace
management
Unnecessary
movements
Assembly operator had to remove the Non-
Value-Added (NVA) such as rubber, plastic,
paper and rope that were used to tie the
materials or to protect the materials from being
scratched.
Assembly operator had to walk 11 m to replace
racking that contains door glass.
Assembly operator had to spend 2 minutes to
replace door trim racking.
Excess workload
Poor material supply
Defects Wrong place replenishment due to a lot of parts.
Wrong parts assembled and missing assembly
process
Excess workload

As the kaizen effort to reduce and eliminate waste, the phase of SPS
implementation was approved by management. The feasibility study was done as
the first step to make the project visible. The current situation and all the
capabilities were studied, including the total process, Work In Process (WIP),
equipment, inventory, manpower and plant layout. The actual data and supply
routes were checked and analysed to provide the best decision. The explanation,
discussion and classroom training were the next step concerning the preparation of
the training material. To build up the confidence level, presentations to the
management, users and suppliers about the goals and benefits were done to spread
the responsibility setting and job allocation. After that, the design and fabrication
phase was done to complete all the equipment needed in SPS implementation. It
was a difficult process to determine the appropriate design that contributes to the
workability and efficiency.
For SPS implementation, three main items equipment are important to ensure
the SPS system works properly:
(i) component racks
(ii) small parts racks
(iii) trolleys
There are certain criteria and elements that contribute to the development of
the equipment as shown in Table 2. The engineers chose which elements are
better and more suitable for the design phase. After the materials were ordered
and supplied, the fabrication phase took a few weeks to finish.
Table 2 Considerations in the design phase
Type of equipment Type of consideration Element
Component racks, Data of Parts Supply Size of container
small parts racks Quantity per container
& trolleys Method of supply in container
Material of part
Component racks Concept of Supply Minomi (parts only)
& trolleys Synchronize
Minomi and synchronize
Container

Component racks Concept of racking Flow racks
& trolleys Flow racks with minomi
Special design of minomi
Component racks, Workability Movable or fixed
small parts racks First In First Out (FIFO)
& trolleys Ergonomic
Visualization
Component racks, Materials and size Cost
small parts racks Durability
& trolleys Stability
The next step was to rectify all the equipment in proper sequence on the shop
floor and test the workability of all the equipment and methods within the process
flow. After that, improvement activities were done to add value to the
implementation process, simplify the equipment handling and eliminate the
unnecessary waste according to the SPS concept and production orientation. After
compliance with the regulations and conditions, full SPS implementation was
done with direction and manual guidance. The monitoring process took a few
days to control the productivity before the process became standardized.
4.0 SPS IMPLEMENTATION
4.1 Before Implementation
Figure 2 shows the layout of process 1 until process 4 as an example of the whole
case study. Before implementation, the component racks of different heights,
lengths and widths were located at the line side assembly line. The parts with multi
variants and models were put on the component racks using different methods;
container, minomi (parts only), or poly box. The parts were placed followed by
the sequence number of the assembly process. For instance, an assembly operator
at process 1 will take materials A, B, C, D and E to complete his job. Since the
space was very limited, only three to four empty containers or poly boxes could be
put in the racking which resulted in many returnable containers on the shop floor.
The small parts such as bolts, nuts and clips also were placed next to the

component racks. The assembly operators have to walk and turn back each time
they need the small parts and tools. The storage area for the reserve materials
from the supplier was located behind the component racks. The storage area was
full of the containers and poly boxes. The shop floor was congested, crowded and
an unfriendly environment to implement 5S.
Figure 2 Layout before SPS implementation
4.2 After Implementation
A number of new racks were designed to ensure the parts were arranged correctly.
The parts were arranged in consideration of the size of the container and poly box
without following the sequence number of the assembly process as shown in
Figure 3. The new arrangement of parts reduced the space area and it is easier for
shopping man to search and pick the required parts. The small part racks also
were designed and placed next to assembly operator to allow picking tools and
small parts become easier. This can reduce the walking step and time to pick up.
The new design of the component racks can locate more empty containers
and poly boxes than before SPS implementation. The returnable empty
containers and poly boxes were put on the top of the racking. The height of the
racking is reduced to 1.5 m. It also makes the shop floor looks clear and wide.

Some of the parts were changed to minomi as a method of supply. The usage of
containers and poly boxes was reduced. By using minomi, it really eliminated the
NVA activities such as removing plastic, walking to bin, pick up the containers and
arrange the empty containers. The quantity parts per supply also increased.
The storage area was eliminated after the implementation of SPS. The
component racks were moved to 4 m from assembly line. The assembly operator
can be seen clearly in a better environment and ventilation. In order to increase
the working efficiency, the job of assembly and selection are done by different
operators. By adding two additional operators to do the selection job, they focus
on selecting and picking parts from the component racks after they read the
information sheet.
The shopping operator need to ensure the parts are in good quality and meet
the requirement before selecting the parts and filling up the empty trolley. After
the trolley complete with ‘set of parts’, it was pushed to the process 1. The set of
parts that only needed for the process is one to one approach either it just hanging
with customized hook, hanger or lay down on the roller, or just stand and resting
on the trolley with specific design. The trolley will flow along the assembly line
using a rail guide to protect the trolley from moving around. The assembly
operator will pick up the required parts and push the trolley to the next station. At
the end of the assembly process, the empty trolley is pushed to the shopping
operator, and then the process of selection will repeat again.
Figure 3 Layout after SPS implementation

The results of SPS implementation at the assembly line can be summarized in
Table 3. The result was supported by the Just-In-Time activities that will be
discussed below.
Table 3 Results of Implementation the Set Parts Supply System
Before Implementation After Implementation
Component
racks
Different sizes with maximum 1.8 m
height.
Standard size with 1.5 m height.
Storage area 100 m2
Eliminated
Supermarket
area
No supermarket area, the line side was
congested with component racks.
Supermarket area is 4 m from
assembly line. There are SPS trolleys
along the line side.
Material A
(per supply)
Supplied using container with
polystyrene, bigger size, limited to
supply only 6 containers.
Supplied using corrugated board as a
partition, much smaller, can supply
up to 10 containers.
Material F
(per supply)
Supplied using poly boxes up to a
quantity to 40.
Supplied using minomi up to a
quantity of 90. Poly boxes
eliminated.
Material G Supplied using poly boxes.
A lot of NVA had to be removed.
Supplied using minomi.
NVA eliminated.
Material I The walking distance was 11 m to
replace the empty rack, the job was
done by the assembly operator, the
material was supplied by forklift and
difficult to handle.
The walking distance is 5 m to
replace the empty rack, the job is
done by the shopping operator, the
material is supplied manually and
easy to handle.
5.0 ACTIVITIES IN SPS
5.1 Pull System
The first step of the SPS system is receiving signal demand from the production
control that was printed in the shopping area on an information sheet. The
shopping operator will take the information sheet and place it on the trolley to
make it easy to select the needed parts. The set of parts can only be supplied to
the assembly line if there is any demand on the information sheet. The
information sheet on the trolley must be in sequence with the model on each

workstation on the assembly line. In this case, the pull system is transferrable and
it is easier for the assembly operator to focus on assembly parts of good quality.
The concept of supplying parts to the shopping area also uses the pull system.
The signal order comes from manufacturer using Manufacturing Execution
System (MES) which is visible to the supplier. The supplier will supply the parts
needed as planned by the MES with the just in time concept. The SPS
implementation disciplines the supplier and manufacturer to only be concerned
with accurate information. However, if there is any problem such as quality or
supply of wrong parts, the shopping operator will quickly respond before the
models arrive at the workstation.
5.2 Synchronization
With the commitment of the supplier, some of the parts supplied are
synchronized with the production schedule. Therefore, the job of the shopping
operator is much easier. As a result, the wrong pick up and installation have been
eliminated. The synchronized parts also reduce the space of the inventory and
reduce the number of racking.
5.3 Minomi
Although the concept of minomi has never been clearly defined in the existing
literature, Hanson [16] in his study defined minomi as a unit load without
container. Liker and Meire [17] simplified minomi as the ‘peanut without shell’.
In this case study, minomi means the parts are put on the racking or trolleys
without poly boxes or containers which are visible to anybody. The concept of
visualization allows the tracking of parts with real time information and a quick
response to product quality verification such as defective or missing parts. By using
minomi, the characteristics of poka yoke have also been implemented in designing
the racking or trolleys to prevent mistakes during the handling of materials. For
the best results, the supplier or operator can only put the right parts in the right
place on the racking or trolleys which have been designed specifically for the parts
with the help of a tagging card and picture. The parts can also be easily picked up
and the time for searching parts is reduced. The engineer considers the size of the

part, the type of material and the characteristics of the part and whether the part is
easy to scratch or breakable.
5.4 Workplace organization or 5S
The implementation of SPS is also considered as a way to extend the 5S concept,
the workplace organization methodology that refers to cleanliness, tidiness and
discipline which is the simplest tool in lean activities to reduce waste. By removing
the unnecessary or NVA items, it also helps to reduce time of searching, sorting,
picking, and also decrease the defects during material handling. After the
replacement of new racks, the line side was clear and created a safer environment
for operators. The management and supervisor, at a glance will obtain the
information directly if things are not well-ordered, misplaced materials or parts
and also the working condition of the operator without verbal communication.
5.5 First In First Out
The concept of ‘parts only’ is to design materials supplied to assembly line with
high safety features and complete with FIFO concept as an approach to control
the inventory. Parts that enter the racking first are the first to be picked up. The
shopping operator must take parts systematically, one by one, and follow the
sequence especially when the part is already synchronized with production. This
method is easy to understand. The advantage of this method is the parts are issued
on the recent purchase. It is very useful when the prices are falling or fluctuating. It
also helps in tracing quality issues especially when a quality problem occurs in an
assembly line, as it is easier to isolate the parts. The replenishment of parts
separately from picking can also reduce inventory misplacement and reduce
inventory loss. This is because the supply operator only supplies in one direction
and puts the parts on the racks. The workplace also looks organized because there
is one entrance to pick up as the loading parts always at the back.

6.0 CONCLUSION
One of the good things in SPS system, it comes as a complete set of parts that
supplied as a unit loads which can be easily seen by the operator. As a new
concept for material handling system, SPS is one of the alternatives in Just-In-
Time practice used to improve inventory control. SPS can reduce the number of
defects and the ultimate goal is cost reduction. The damaged materials and part
shortage can be identified earlier by creating an efficient and orderly workplace.
Although the implementation of SPS increased the number of manpower, but the
reduction of inventory is more important to cost savings, improve stock accuracy
and enables efficient inventory tracking. In addition, by implementing SPS, it is
much easier to implement 5S. SPS also maximize the benefit of workplace
management and visualization by designing the appropriate component racks and
using minomi method in supplying materials.
ACKNOWLEDGEMENT
The authors would like to thank Universiti Kebangsaan Malaysia under
Dana Operasi Universiti Penyelidikan (UKM-OUP-NBT-28-125/2011) for
supporting the Advanced Manufacturing Research Group (AMReG).
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