Operation Managment Assignment

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1.0 Introduction

The company that we did the research is Hartalega Sdn Bhd which locates in Bestari Jaya , Selangor. This
factory was officiated and attended by the executive chairman Kuan Kam Onn. This company is established as
manufacturer and specification developer. We had made a trip for the purpose of study and research on their
operation process and facilities layout.

Hartalega stablished in 1988, Hartalega is the world’s largest nitrile glove producer, manufacturing 14 billion
gloves annually. It exports to the Americas, Europe, Asia Pacific and Middle East. Hartalega was the first
company to introduce soft stretchy nitrile gloves, emulating the natural properties of natural rubber latex.

Since then, it has caused a world demand shift from latex to nitrile. Hartalega is certified in ISO 9001, ISO
13485, EN ISO 13485 and ISO 14001. Awards include Forbes Asia Best Under A Billion (2010-2013),
Asiamoney Overall Best Managed Company (2012 & 2010) and HR Asia Best Employers to Work for
(2013).
Hartalega was the creator of the first soft stretchy nitrile glove. It is lightweight, improving tactile sensitivity,
and is able to emulate the properties of natural rubber latex gloves while remaining cost effective. Nitrile
gloves eliminated the chance of protein allergy risks associated with rubber latex. Hartalega is the most
automated glove production company in the world. Its automated process not only improves efficiency, it is
also able to eliminate product contamination resulting from human contact. Its 24/7 automated monitoring
system is able to ensure glove quality is consistent at all times.
Hartalega began exporting their products as soon as the company was established. Today, Hartalega
commands about 18% of the market share in the USA for their industry. They export 100% of their products
internationally, including the Americas, Europe, Asia Pacific, Africa, and the Middle East.
Hartalega Sdn,Bhd gains this high sale because they are concern on the innovation. They have a Research and
development (R&D) team that continuously design and design new products and manufacturing processes to
fulfil the customer needs and always working closely with the customers. The research of new equipment and
technologies as well as productive new manufacturing processes is constantly carried out in order to improve
the efficiency of the plant and the quality of the manufactured products.This company also win many awards
as below stated:

Hartalega has gone on to win many prestigious accolades, including:


1. Forbes Asia Best Under a Billion - 2013, 2012, 2011 & 2010
2. Asiamoney Best Managed Company - 2014, 2012 & 2010
3. Asiamoney Corporate Governance Award – 2015
4. MSCI Malaysia Index Financial Performance – 2015
5. FTSE4Good Bursa Malaysia Index - 2017, 2016, 2015 & 2014
6. FTSE Bursa Malaysia Hijrah Shariah Index - 2016, 2015, 2014 & 2013
7. M100 Graduate Employer Award – 2015
8. HR Asia Best Employers to Work for in Asia – 2014 & 2013

Besides that,HartalegaSdn.Bhd developing new operation processes helps to reduce the amount of waste by
use renewable energy sources for biomass process as burning fuels.

Chairman of the Company

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Mr. Kuang Kam Hon

Executive chairman

2.0 Company’s Production / Operation Processes & Facility Layout

(a) Production / Operation Process

(i) Description

In this segment, making of gloves is a multi-stage process. To be market as a quality gloves, the gloves must
meet the required Accepted Quality Level (AQL). For those gloves that did not meet the AQL, the gloves will
be downgrade or general use.Also they use many new system to upgrade the operation process like Kanban
system , Kaizen . Hartalega’s continued technological innovations help ensure their gloves are manufactured
with equal emphasis on efficiency and quality; a key reason why customer are trusted as the OEM
manufacturer for some of the world’s biggest brands.

In the process of gloves manufacture, there is always have no one size fits all means that although the glove
may be seem similar of the outlook but the strength, physical properties and many more may different from
one manufacture to another.Since 2002 , Hartalega is the forefront of nitrile gloves production.Thta’s over a
decade of producing world nitrile gloves, along with the introduction of major technological improvements in
nitrile glove manufacturing that has cemented the reputation the world over.

Moreover, when the process started, the raw materials such as latex and chemical will examined within
required specification. Next, latex, chemicals, and colour pigments will be mix accordingly to required gloves
specification by R&D department.

Formers Cleaning and Drying

Automated brushing mechanism nowadays is implemented in dipping lines. Throughout this process, the
formers are clean and also to ensure the latex able to stick to the formers during latex dipping is in excellent
result. In the cleaning process, acid bath is to remove organic materials from the formers whereas alkaline
bath is to remove inorganic materials. Then, formers will pass through a few of brushes to wash and scrub the
former surface and the former finger gap before rinse in clean water. After cleaning, it will enter to dryer oven
before coagulant dipping process started.

Coagulant Dipping and Drying


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In this process, after formers dry in dryer oven, it will be dipped into coagulant solution as the first chemical
that consists. The quality of latex on the formers and the thickness of the gloves are determined by the
coagulant. Before proceed to latex dipping, formers will enter to dryer oven again to dry the coagulant
chemicals.

Latex Tank

The coated formers will be dip into latex tank.

Oven

After dipped in latex tank, it will now enter to dryer oven with a suitable temperature for the polymer and
chemical take reaction.

Beading

Gloves are generally beaded and this process provide better aesthetic look to the gloves and the adjustment of
beading mechanism will enhance the cuff strength.

Pre-Leaching

During this process, formers will go through a series of hot water tank around 40-50°c, it is to dissolving out
the chemical residues.

Chlorination

Powder free gloves produced, when the gloves are dipped into chlorination solution. The function of chlorine
is to hardening the gloves surface and reduces the surface friction, thus facilitate easier donning.

Post-Leaching

In this process it serves two major purposes, neutralize gloves from chlorination and remove additional
chemical residue. In short, this is the last process to thoroughly clean the gloves.

Stripping

Now semi automated with partial stripping capability is implemented in dipping lines,it is to give the line
work at speed that create high productivity rate.

(ii) Analysis

Strength

In production area, the strength is the process is work in flow. The process which is continuous and run 24-
hour, this is to cope the productivity daily and monthly. For instance, when gloves are finished produce, some
of the gloves are damage, this is because of machine error that some time cannot be avoid and the only way to
maintain gloves quality is by adjusting the machine in the production area. Therefore, Hartalega industry
which allocates 3 supervisor for the whole plant , 1 members of group leaders for per line, and 5 operators of
employee in each production blocks for per shift. This is to ensure the machine that runs 24-hours nonstop is
under good condition. Besides that, production manager will have a briefing every morning, this is to make
sure their work is in flow and in order and follow up the daily task.

Weaknesses

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A weakness that occurs in production process is the environment that cannot be avoid. For example,
unavoidable situation is the insects or bugs which sometime will fly into the latex tank. When the former is
dip inside the latex, former will dip into latex and the probability to dip up the insects or bugs might occur.
This situation is occurring in the glove that has an insect or bug that stick in the glove. Besides, other
weakness is the machine error that also cannot be avoided. In this situation, two weaknesses which will occur
that will lower the quality of gloves that are knocking and touching. Knocking happened when the distance
between former and former are adjusting too near to each other. When this happened, the finger tips of former
will knock each other and create a hole on the glove. Touching happened when the former is adjust not
accurate and the former "touch" the machine or around the machine. This will create holes on the gloves and
dirty the gloves too. Last, the weakness is double dipping of gloves, which will occur in two situations: human
error (concentration of employees while working) and housecleaning (production block stopped process for
cleaning process or to change the size of former). When the two situations occurs, some of the gloves will sure
dipped in twice because workers in under adjusting the machine temperature, adjusting the beading machine,
or checking for the former condition.

(b) Facility Layout

(i) Description

In this segment, we will talk about the facility layout that after the gloves is produce; they will come to a room
which called stripping room. Stripping room has two models that is either auto strip or manual strip machine.
Manual strip machine still functioning in Hartalega Sdn.Bhd, while auto strip machine (GSR) in plant 6 only
Manual strip which required six workers in a line, this is to prevent some uncertainty situation. Whereas for
auto strip, it only required four workers in a line because auto strip machine is work with the help of air pump
machine that blow out the gloves for easy pulled out.

In this room, after gloves are collect, put in a basket, there are two workers will in charge the basket weighing.
Which they will ensure each basket only can put 4000 pieces of gloves. After that, they will pull the basket to
an area called storage area (an opened area in the room which let quality control members and quality
assurance to do checking for the gloves).

After that, the gloves will be cooling down in the storage area around few minutes, quality control (QC)
members and quality assurance (QA) members will start to inspect the gloves. QC members who will slot the
gloves again, this is to ensure the gloves are not stick together, while slotting they will have a quick check to
each piece of glove for any damage. QA members will randomly choose 20 pieces of gloves in a basket for
gloves quality inspection. QA will measure their palm length, gloves weight, the gloves length, any damage
such as hole, stain, visible hole gap, former defect (FD), and so on. If any problems occur, they will
immediately report to production area, so that they will immediately take actions. Besides that, there also have
an area for water leak test. Water leak test is the final test for the gloves. Sometimes, some defect that cannot
be seeing, water leak test can find out the problems. QA will cover the inspection glove to each pipe to fill up
with water. The test can see the result of the quality of gloves elasticity, any small minute hole on the gloves
and the strength of the glove’s bead.

After all process is done, the basket will certified by the QA members and ready for packing. One workers
which work as work in process (WIP), will responsible to transfer the basket of certified gloves to packing
area.

(ii) Analysis

Strength

As we can see, the strength is the process is work in a flow. In the description, we can know that, after the
gloves have been produce out, the first thing to do is weighing the basket, next will move to storage area for
cooling down, QC and QA members take action to start inspection on the quality of gloves. All the process
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which done in one area (or inside a block), this which show the productivity rate and efficiency rate. The
facility layouts which show at Hartalega Sdn.Bhd is fully utilize the space, improvement the flow of physical
movement and people. In addition, the layouts also reduce the movement time.

Moreover, Hartalega Sdn.bhd also utilize the material handling equipment. Inside the stripping room, most of
the workers which work for the physical movement such as transfer the basket to another site, they will use
pallet jet as their primier equipment to help them carry the baskets. Although the pallet jet is slightly big and
not too flexible, but it allow a worker can handle sixteen baskets in one time to transfer from one place to
another place.

Weaknesses

Weakness that occurs in the area is when bigger volume is produce, sometimes baskets do not have enough
place to put. When this situation happens, they will move the balance baskets to basement floor for storage.
When have enough place to put at the floor, workers will transfer again from basement to ground floor. The
situation increases the unnecessary time movement and increase the work of workers. Therefore, it will reduce
the efficiMoreover, poor lighting, ventilation and air cleaning arrangement also another weakness that occur
in stripping room. Poor lighting which will affect the visual of employees to detect the defect and this might
reduce the percentage of quality checking to the gloves. In general, ventilation which is a control that
available to reduce the concentration of fumes in the air, smoke, vapours, and dusts. Poor ventilation which
will cause the area lack of oxygen (headache, fatigue, asphyxiation) and this will cause the gloves become
sticky because of increase carbon dioxide. Last the air cleaning arrangement too, which will affect the
environment become more dusts and lower the quality of gloves. The poor arrangement, will affect the gloves
stick to dust and this will affect the quality of checking.

ency and productivity. In addition, it might affect the workers strike.

3.0 Literature Review

Glove is a covering for the hand worn for protection against cold or dirt and typically having separate parts for
each finger and the thumb. Glove Factory is factory where the gloves make. There are many type of glove
factory in this world. For example, rubber glove factory and latex glove factory. In this assignment, we will
introduce you one of the glove factory in Malaysia.

Glove manufacturing sector in Malaysia

History

The phenomenal growth in the latex gloves industry in 1990s can be attributed to the AIDS outbreak and the
1987 'universal precautions' as mandated by the Centre for Disease Control and Prevention (CDC) of the
U.S.A. when dealing with blood and bodily fluids. Healthcare institutions in the U.S. began demanding large
quantities of latex medical gloves, which offered the best available protection, to those whose occupations
necessitated exposure to and protection from pathogens. This had triggered a similar rapid increase in the
consumption of latex for the manufacture of medical gloves in East Asia with the relocation of latex-based
industry from the USA and Europe to natural rubber producing countries to take advantage of close proximity
to latex supply, cheaper labour and attractive government incentives.

3.1.2 History of the glove manufacturing sector in Malaysia

Malaysia is one of the producing countries which seized the opportunity to expand the latex based industry. In
the early 1970’s, Malaysia was the largest exporter of latex concentrate supplying about 80% of the total
global needs while domestic consumption was as less than 5% of the local output. However by 1989,
Malaysia became the world’s largest user of latex concentrate.Natural Rubber latex consumption in Malaysia
increased gradually albeit at very low rates in the 1970s and first half of the 1980s. Statistics on natural rubber
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latex consumption by the various types of latex products showed that the uptake by the glove sub-sector
registered the highest growth from a mere 18 178 tonnes in 1987 to 201 478 tonnes in 1999 to register an
eleven-fold growth and account for a 77.7 % of the sector’s uptake and 54.2% of the industry total. In 2000
the uptake dropped to 190 703 tonnes. Another recent development in rubber consumption by the sector is the
growing uptake of nitrile latex for the manufacture of gloves. Falling prices of latex gloves and rising demand
for alternative gloves for protein-sensitised users have led to more manufacturers venturing into nitrile glove
production. Consumption of the material by the sector had increased to almost 12 000 tonnes in 1999.Over
here is the data that show that how was the Malaysia state in this industry in 2009

In 2012, there are many factors that cause the growth of the glove industry in the Malaysia. The factors are

A)Barrier protection

Medical gloves are a necessity in the healthcare industry because they serve as a protective barrier against
infection and disease.

B) Increased awareness

The developed nations also have more stringent requirements now to improve healthcare quality.

C) Ageing population

The elderly is more susceptible to higher-risk diseases and a greater proportion of them are living longer,
therefore requiring more healthcare services.

D) Health threats

Breakouts of pandemics such as H1N1, SARS and the avian flu as well as terrorist threats (Anthrax)

Over here is the statistic data that show that the causes of the disease growth of the latex glove in Malaysia

Product strategy

Introduction

The company that we interview is Hartalega Sdn Bhd. Hartalega Sdn.Bhd is a latex & nitrile glove
manufactoring factory. The factory applies the product oriented strategy. It is general approach to business
that focuses on the manufacturing and production processes. Companies that make these processes primary
focuses tend to make operational efficiencies and production optimization key objectives in improvement
processes.

The reasons that apply the strategy are the company only produces two type of the products, that is latex glove
and nitrile glove with difference sizes. In order to reduce the cost and increase the product the company
applies the product oriented strategy.

Advantage and disadvantage of the strategy

3.2.2.1 Advantage

A) Responsiveness

With this strategy it can let the factory focus on the few products only and respond fast on the problem that
causes by the environment. For example, there is bug mixed with the latex glove, if the operation team realise
it easily , the team can immediately take off the defected product to control the quality.
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B) Constant Improvement

Beside that just because we only focus on two type of product, so the R&D department of the factory can
focus on these two products on how to modify the machine of the factory to produce more high quality glove
and more quantity of the glove to supply the increase need of the market.

C) Costs

The variety cost of the product will decrease just because we only need a few types of raw materials with
large amount to produce the product with lower cost.

D) External Influences

With this strategy, the factory can focus on the problem will affect the production of the two products with
faster speed and more efficient.

3.2.2.2 Disadvantage

Missed Opportunities

The factory only focus on latex glove and nitrile glove produce and it no consider that actually still got other
raw material that can replace latex and make more quality and less cost product.

Obsolescence

The factory only focus on the latex glove product ands nitrile glove product may be one day there got a new
technology to produce a new product that can replace the glove with more cheaply and useful. So that time the
factory may face the crisis because of the development of new technology.

Facility Layout

Introduction

The company that we interview is Hartalega Sdn.Bhd apply the product oriented layout. Product layout is
used for systems with high production volumes and a low variety of products. Facilities are organized
according to the sequence of the successive manufacturing operations. In the factory it’s consist of the 10
product line which is all are producing the same product that is nitrile gloves. In these ten product line its
contain two type of the product line. One of the product line is with auto strip system, another one is with the
manual system.

Advantage

The low variable cost per unit usually associated with high-volume, standardized products and low material
handling costs.

This facility layout will allow the low variable cost for the nitrile glove produce and the volume of production
for the glove will remain constant in high volume to supply the need of the market.

Reduced work-in-process inventories.

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With this layout it can reduce the human error that can be formed, because almost all the process is automated
already. So less labor is needed then less technical is require controlling the machines.

Easier training and supervision.

The Factory is increasingly becoming more automated as a result of technology advances. Almost all the
process is controlled, so less labour is need and less training provided because almost all the process is
programmed and just need to press or click the button. The only challenge they faced is management must
know the tools, equipment, and work methods used. Then the timing requirements for each assembly task
must be determined. Management also needs to know the precedence relationship among the activities, which
is the sequence in which various tasks must be preformed.

Rapid throughput.

With the automation of the factory, almost all the process is done by the machine and without any delay. The
time consuming for producing a glove will decrease because of the existing advance machine technology.

Disadvantage

High volume is required because of the large investment needed establish the process.

Because of the high fixes cost in the process of making glove by using the existing machines in the factory, so
the factory will have minimum order limit in order to make profit and reduce the cost of the each glove is
produce

Work stoppage at any one point ties up the whole operation.

When one of machine is break down in a line, the whole line of the production will be stopped down. At the
same time, its need the engineer to check the entire machine in the line, to identify the problem it will delay
the schedule for production and some time will make loss to the company.

There is a lack of flexibility when handling a variety of product or production rates.

With this type of layout, its only can produce the same type and same size of the nitrile glove in a line only. If
want to change the size of glove to produce its need a day to change the equipment(former) in the machine
and after that almost all the worker will stop working because of waiting the process to change the equipment.

Human Error

Although there almost all the process is automated already, but still got some time that defect product is
produce because of the human error. For Example, when in the striping process, if the worker cannot manage
to strip all the glove on time, that will caused the unstirred glove flow back to production line and cause the
defect product is produce.

4.0 Discussion

The production processes, facility layout and managing facility layout of a factory; these three things are very
important for a factory or company.Hartalega sdn.bhd is a glove company whom making gloves.

Firstly, the production process of gloves is very important, in Hartalega sdn.bhd there is no "One Size Fits
All" for their glove, although the glove may be seem similar outside but the physical properties, glove
donning feel, strength, and many more may vastly differ from other manufacture. Hartalega sdn.bhd is using
product focus strategy to implement their daily production task and monthly production task. The reasons that

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applied the strategy is because Hartalega sdn.bhd just focus on 2 types of the products that are latex glove and
nitrile glove with different sizes, in order to reduce their cost and increase the quality of the product.

Next, the facility layout of Hartalega Sdn,Bhd is product oriented layout. The product oriented layout is used
for systems with high production volumes and low variety products. Facilities are organized according to the
sequence of the successive manufacturing operations. It does can fully utilize all the machines and facilities in
the company. Besides that, Hartalega sdn.bhd no need spend extra money to provide training for their
company’s workers. In other way, Hartalega sdn.bhd is invested more automated equipment to handle their
production instead of only depends on labour only.

Finally, managing facility layout for a company is a very tough work. The top management able to manage
their facility layout in proper way, it can increase their company efficiency and effectiveness. For example,
minimization of production delays, improved quality control, minimum equipment investment, avoidance of
bottlenecks and so on. Therefore, Hartalega sdn.bhd is trying to make their company more and more
efficiency and effectiveness by using automated machine, and allocates 5 supervisors,10 group leaders and
100 operators for the whole plant that contain 10 production lines for 24 hours .

Hence, Hartalega sdn.bhd able to handles production process, facility layout and managing facility layout in
proper way. It’s can help Hartalega sdn.bhd grow faster in the future and become more efficiency and
effective glove factory against their competitors such as Top glove Sdn.Bhd, Kossan Sdn.Bhd , Supermax
Sdn.Bhd and extra.

Our recommendation is to improving the production process, one of the alternative ways needs to find out is
how to prevent the insects or bugs fly into the latex tank. Research and development department can create a
closed-tank with good ventilation in the tank. Latex which boiled in around 30-40°c, therefore if closed-tank
is create; they must ensure that there have a good ventilation process inside the tank. Besides, they can put
more capital to invest in the upgrading of machine. For example, they can upgrade by fixing insect killer
machine instead adjusting by employee

5.0 Conclusion

The Hartalega sdn.bhd is a latex glove and nitrile glove manufacturing factory. The factory applies the
product oriented strategy. Making of gloves is a multi-stage process which include Formers Cleaning and
Drying, Coagulant Dipping and Drying, Latex Dipping, Pre-Vulcanization Oven, Beading, Pre-Leaching,
Chlorination, Post-Leaching, and Stripping. The strength of the Company’s Production or Operation
Processes is the process is work in flow. Besides that, production manager will have a briefing every morning,
this is to make sure their work is in flow and in order and follow up the daily task. However, the weakness is
the environment that cannot be avoided.

Then for the facility layout, the gloves will be cooling down in the storage area around few minutes, quality
control (QC) members and quality assurance (QA) members will start to inspect the gloves. QC members who
will slot the gloves again, this is to ensure the gloves are not stick together, while slotting they will have a
quick check to each piece of glove for any damage. The strength of this facility layout is the gloves have been
produce out, the first thing to do is weighing the basket, next will move to storage area for cooling down, QC
and QA members take action to start inspection on the quality of gloves. However the weakness is bigger
volume is produce that occur in the area sometimes baskets do not have enough place to put. When this
situation happens, they will move the balance baskets to basement floor for storage. When have enough place
to put at the floor, workers will transfer again from basement to ground floor. The situation increases the
unnecessary time movement and increase the work of workers.

As a conclusion, managing facility layout for a company is a very tough work. The top management able to
manage their facility layout in proper way, it can increase their company efficiency and effectiveness. For
example, minimization of production delays, improved quality control, minimum equipment investment,
avoidance of bottlenecks and so on. Therefore, Hartalega sdn.bhd is trying to make their company more and
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more efficiency and effectiveness by using automated machine, and llocates 5 supervisors,10 group leaders
and 100 operators for the whole plant that contain 10 production lines for 24 hours .

References

http://www.matrade.gov.my/brands/en/products/16-rubber-products/130-hartalega

ww.mrepc.com

https://www.scribd.com/presentation/374798657/Industrial-Training-Slide-Presentation

www.hartalega.com.my

Emy.Dzafrul@ Hartaega.com.my

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