Productivity Improvement Techniques

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Productivity Improvement Techniques:

Productivity Improvement Techniques

What is Productivity?:

What is Productivity? It is a measure of how well resources are utilized to produce output It relates output to input in any system, where some value addition is performed on the input resource Productivity = Output Obtained Input Expended 2

Production & Operations Management:

Production & Operations Management Production & Operations Management is concerned with the production of goods & services & involves the responsibility of ensuring the business operations are efficient in terms of using as little resources as needed & effective in terms of meeting customer requirement. It is concerned with managing the process that converts inputs into outputs Efficiency = O/P I/P Effectiveness Plan V/S Actual 3

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Factors affecting Productivity Ineffective time due to management Marketing policy which demands unnecessarily large number of products. No standardization of components between as well as within products. Failing to meet customer’s requirement from the beginning. No plan for flow of work. Improper supply of material, equipment. Improper maintenance of plant and machines. Insufficient safety measures. Improper working conditions resulting in interrupted work. Ineffective time within the control of worker Taking time off without good cause: by lateness, by idling at work etc. Careless workmanship causing scrap or rework. Failing to observe safety standards. 4

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Factors affecting Productivity Work content added due to process Incorrect machine (and/or hand tool) used Process not operated properly Non-optimal layout with wasted movements. Working methods of operation causing wasted movements, time and efforts. Work content added due to the product The product or its components are designed such that it is impossible to use most economical manufacturing processes. Excessive variety or lack of standardization. Incorrect quality standards. 5

Productivity Improvement at Enterprise Level:

Productivity Improvement at Enterprise Level The various Productivity Improvement Techniques at Enterprise Level are: PARETO ANALYSIS ISHIKAWA DIAGRAM CHECK SHEETS HISTOGRAM 6

Pareto Analysis:

Pareto Analysis The Pareto Chart, at its simplest, is a Bar Chart in which the bars are sorted into size order, with the highest bar on the left. It works on the 20-80 principle. Note that the height of the bars implies priority. Usually the bars are a count of defects or problems. They may be weighted, for example by cost, to improve the prioritization effect. 7

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Why use it? To focus on the problems/issues that offer greatest potential for improvement What does it do? Helps identify “the vital few” from “the trivial many” Displays the relative importance of problems in a simple graphical way Helps in prioritizing efforts for improvements Pareto Analysis 8

Application of Pareto Analysis:

Application of Pareto Analysis 9

Slide 10:

Application of Pareto Analysis 10

Cause and Effect Diagram:

Cause and Effect Diagram Also known as an Ishikawa Diagram (after its originator, Kaoru Ishikawa, who first used them in Kobe Shipyards in the 1940s). It is also more popularly known as the Fishbone Diagram. In essence, it is simply a tree or hierarchy, showing how causes have causes have causes. The fishbone shape is due to angling of lines so text can more easily be fitted in. Its main use is to discover potential causes of unwanted problems. It also can be used more flexibly for such as discovering how to cause solutions 11

Cause and Effect Diagram:

Why use it? To help the team organize and graphically display all the knowledge it has about the problem What does it do? It helps unearth all possible causes for the problem at hand by capturing views of all members Creates a consensus around the problem and builds support for resulting solutions Focuses the team on causes rather than symptoms Organizing data serves as a guide for discussion and inspires more ideas Cause and Effect Diagram 12

Application of Ishikawa Diagram:

Application of Ishikawa Diagram 13

Check Sheets:

Check Sheets A Check Sheet is pretty much any form of organized manual data collection, although there are some specific variations One of the side-effects of using Check Sheets is that the person using it becomes very aware of the data they capture and can see the patterns of data building up in front of their eyes Check Sheets are sometimes called Data Collection Sheets. They also get called Tally Charts, although as 'tally' means 'to count', these do not strictly include such as Checklists and Location Plots. 14

Check Sheets:

Why use it? To provide a structured way to collect quality related data as a rough means for assessing the process What does it do? A Process Distribution Check Sheet measures the frequency of a single item across a range of measures, visually showing the distribution. These are interpreted as histograms. A Defective Item Check Sheet counts and classifies defects by type, as below. If the expected ordering is known (e.g. the Pareto sequence), then the Check Sheet can be designed with this ordering set up, so any deviation may be detected. These may be interpreted as Pareto Charts (and can be redrawn as such). Check Sheets 15

Application of Check Sheets:

Application of Check Sheets 16


Histograms When measuring a process, it often occurs that the measurements vary within a range of values. The Histogram shows the frequency distribution across a set of measurements as a set of physical bars. The width of each bar is constant and represents a fixed range of measurements (called a cell, bin or class). The height of each bar is proportional to the number of measurements within that cell. Each bar gives a solid visual impression of the number of measurements in it and together the bars show the distribution across the measurement range. The distribution of measurements can be seen far more clearly in the Histogram than in a table of numbers 17


Why use it? Helps summarize data from process that has been collected over a period of time Helps graphically represent data frequency distribution in bar form What does it do? Reveals centering, variation and underlying distribution of data Helps answer the question “Is the process capable of meeting my customer requirements?” Helps to indicate if there has been a change in the process Histograms 18

Application of Histograms:

Application of Histograms Industry Example Fig. 1. Histogram shows selected sample 19

Productivity Improvement at Workplace:

Productivity Improvement at Workplace The various Productivity Improvement Techniques at Workplace are: Lean Manufacturing Kaizen Six Sigma 5S Principle 20

Lean Manufacturing:

Lean Manufacturing 21

What is Lean Manufacturing?:

What is Lean Manufacturing? It is a manufacturing philosophy which shortens the time line between the customer order and the product shipment by eliminating waste. Customer Order Time Product Shipment Waste Customer Order Time (shorter) Product Shipment Waste Normal Manufacturing Lean Manufacturing 22

7 Types of Wastes:

7 Types of Wastes Overproduction Waiting Transport Extra Processing Inventory Motion Defects 23

7 Types of Wastes:

7 Types of Wastes Overproduction Overproduction occurs when operations continue after they should have stopped. The results of overproduction are; Products being produced in excess of what’s required Products being made too early Excess inventory carrying costs Waiting Also known as queuing, waiting refers to the periods of inactivity in a downstream process that occur because an upstream activity does not deliver on time. Idle downstream resources are then often used in activities that either don’t add value or result in overproduction 24

7 Types of Wastes:

7 Types of Wastes Transport This is unnecessary motion or movement of materials, such as work-in-process (WIP) being transported from one operation to another. Ideally transport should be minimized for two reasons; It adds time to the process during which no value-added activity is being performed. Handling damage could be incurred Extra Processing This term refers to extra operations, such as rework, reprocessing, handling or storage that occurs because of defects, overproduction or excess inventory 25

7 Types of Wastes:

7 Types of Wastes Inventory This refers to inventory that is not directly required to fulfill current Customer orders. Inventory includes raw materials, work-in-process and finished goods. Inventory all requires additional handling and space. Motion This term refers to the extra steps taken by employees and equipment to accommodate inefficient process layout, defects, reprocessing, overproduction or excess inventory. Motion takes time and adds no value to the product or service. 26

7 Types of Wastes:

7 Types of Wastes Defects These are products or services that do not conform to the specification or Customer’s expectation, thus causing Customer dissatisfaction 27

Various Tools of Lean:

Various Tools of Lean Poka Yoke Kanban 5S Kaizen POKA YOKE It is a Japanese Term that means ‘mistaking proofing’ It is a mechanism of lean manufacturing that avoids ( Yokeru ) mistakes ( Poka ) Its purpose is to eliminate product defects by preventing, correcting or drawing attention to human errors KANBAN Kanban is a scheduling system that tells you what to produce, when to produce it & how much to produce. It is a system of continuous supply of components & parts such that workers have what they need, where they need & when they need. 28

5 S Principle:

5 S Principle 29

5 S Principle:

5 S Principle 5S is a Japanese philosophy focused on planning organizing & managing the shared workplace like a shopfloor or office. This is achieved by eliminating all wastes, improving flow of resources (like men & material) & organizing processes in an efficient manner. 30

5 S Principle:

5 S Principle 5S Principle are based on 5 Japanese terms: SEIRI i.e. Sort – Aims at eliminating everything that makes the workplace cluttered & is not required for the job being performed. SEITON i.e. Set in Order – Efficient placement, arrangement, organization & scheduling of equipments / material. SEISON i.e. Shine – Maintenance of tidiness & cleanliness in the workplace. SEIKETSU i.e. Standardization – Ongoing, standardize, continually improving Seiri , Seiton , Seison . SHITSUKE i.e. Sustain – Discipline with leadership, involvement of people , integration into the performance measurement of people 31

5 S Principle – Sort & Set Order:

5 S Principle – Sort & Set Order Sort - Unneeded tools /parts /supplies removed Set in Order - A place for everything and everything is in its place After 5 S Before 5 S 32

5 S Principle – Shine :

5 S Principle – Shine Return items in clean and Polished condition Disposal of scrap and left –over materials, Cleaning: Fresh, Orderly environment & Mind. Area is cleaned as the work is performed (best) and a routine to keep the work area clean. 33

5 S Principle – Sustain :

5 S Principle – Sustain To do things right first time, every time Regards to safety rules , practices and punctuality. Creating a workplace with good working habits. 34

5 S Principle – at Texas Die Casting :

5 S Principle – at Texas Die Casting 5S was implemented in the Maintenance Dept of Texas Dies & the following benefits were seen: Easier to find tools & parts Found $1,000 worth of replacement parts which were about to be ordered. Found 20% more space in maintenance area 35

5 S Principle – at home :

5 S Principle – at home Before After 36

Six Sigma:

Six Sigma 37

Six Sigma:

Six Sigma Six Sigma stands for six standard deviations It is a statistical term which measures how far a process varies from perfection. It was started in Motorola, in its manufacturing division, where millions of parts are made using the same process repeatedly The concept was first introduced by Mikel Harry in 1986 . In 1987, Bob Galvin launched a long term quality program called ‘ The Six Sigma Quality Program ‘ It provides techniques & tools to improve capability & reduce defects in a process 38

Six Sigma:

Six Sigma It improves any existing business process by constantly reviewing and re-tuning the process Six Sigma strives for perfection. It allows only 3.4 defects per million opportunities for each product or service transaction. 39

DMAIC Tool Kit for Six Sigma:

DMAIC Tool Kit for Six Sigma Define: Problem defined Stakeholder & resources identified Goal & objective statement Measure: Criticality Performance standard Data collection system Analyze: Root cause Analysis process mapping Improve: Alternate solution Implement Control: Realize benefits of Implementing solutions Close project & communicate results 40

Six Sigma:

Six Sigma Six sigma is a stretch goal of achieving 3.4 defects per million opportunities. Sigma Permissible defects per million opportunities 6 sigma 3.4 5 sigma 233 4 sigma 6210 3 sigma 66807 2 sigma 308,537 1 sigma 690000 41

Six Sigma - in various industries:

Six Sigma - in various industries Adoption of Six Sigma techniques led Wipro to complete 91% of its projects on time against an industrial average of 55% Pharmaceutical companies like Pfizer have used the Six Sigma technique to reduce wastage & rework involved in production. (typically 5-10% of the medicines produced are discarded or reworked upon due to defects) Major Players of the Airline industry like – Kingfisher, Jet Airways & Indian Airlines , adopted the Six Sigma technique to reduce number of errors in handling customer calls & ticketing. 42


Kaizen Kai = Change Zen = For Goods Kaizen = Continuous Improvement 43


Kaizen Kaizen refers to philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, supporting business processes, and management It aims at improving productivity at the workplace by minimizing or eliminating Inconvenience ( Muri ), waste ( Muda ), Inconsistency (Mura). The foundation of Kaizen Method consists of 5 founding elements: Team Work Personal Discipline Improved Morale Quality Circles Suggestions for improvement 44


Kaizen Kaizen is a system that involves every employee - from upper management to the cleaning crew. Everyone is encouraged to come up with small improvement suggestions on a regular basis. This is not a once a month or once a year activity. It is continuous Suggestions are not limited to a specific area such as production or marketing. Kaizen is based on making changes anywhere that improvements can be made Kaizen involves setting standards and then continually improving those standards 45

Benefits of Kaizen:

Benefits of Kaizen Improved productivity Improved quality Better safety Faster delivery / Turn Around Time Lower cost Greater customer satisfaction Continuous flow of small ideas Employee retention Permanent method changes 46

Slide 47:

Thank You 47

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