Ie & Productivity - 1

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Industrial Engineering integrates knowledge and skills from several fields of science: From the Technical Sciences, Economic Sciences as well as Human Science - all these can also be supported with skills in Information Sciences. The Industrial Engineer comprehends knowledge in those sciences in order to increase the productivity of processes, achieve quality products and assures Labor safety 2

Standard of living • The extent to which a person is able to provide the things that are necessary for sustaining and enjoying life. • Standard of living of a representative family differs greatly in different parts of the world. • What is considered a necessity in one part of the world could be considered a luxury in the other. • Basic necessities of a minimum decent standard of living: Food, clothing, housing and hygiene. Also, security and education also considered constituents. • Greater the amount of goods and services produced in any community, the higher its the average standard of living. 3

Standard of living • There are two ways of increasing the amount of goods and services produced: - Increase the employment and investment in creating jobs. So that more people are producing goods required for the society. - Increase productivity. Same amount of labor produces more goods. We want: • More and cheaper food by increase in agricultural productivity • More and cheaper clothing and housing by increased industrial productivity • More hygiene, security and education by increasing overall productivity. 4

Productivity • Ratio between output and input. • Arithmetic ratio of the amount produced to the amount of any resources used in the production. • The resources may be: land, material, plant, machines, tools, labor. It could be combination of all! • Over a period of time, one can say that productivity has increased. • How? • Combination of improved technology, better planning, greater skills etc. 5

Productivity • Note that, increased production does not mean increased productivity. • Higher productivity means that more is produced with the same expenditure of resources; that is, at the same cost in terms of land, material, machine, time or labor. • Alternatively, same amount is produced at less cost in terms of land, labor, material etc; thereby releasing some of these resources for the production of other things.

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Productivity and standard of living •

If more is available at the same cost, or the same amount is available at lesser cost the whole community benefits.

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As per the ILO, higher productivity provides ways for raising the standard of living by: Larger supplies of both consumer goods and capital goods at lower cost and prices Higher real earnings Improvement in working conditions, e.g. by reduced working hours In general, strengthening of the economic foundations of human well-being.

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Productivity in industry • Many factors affecting productivity of each organization; also, they are dependent. • Depending on the individual environments, decisions are to be made. • Industries where labor and capital costs are low compared to the material costs, better use of material and plant gives the greatest scope of cost reduction. • In countries where capital and skilled labor are in shortage compared to unskilled labor, one should look to increase the output per machine or per skilled worker. • Increasing the number of unskilled workers may be beneficial if by doing so an expensive machine or skilled craftsmen are enabled to increase production. 8

Government’s responsibility • • • •

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Government can create conditions favorable to raise productivity. It can: Have a balanced programs of economic development Take steps necessary to maintain employment Make opportunities for employment. Last step is specifically important for a developing country like India. Government should make provisions for workers who are going to loose jobs because of technology improvement – training and education programs. Example: India’s First Five-Year Plan (1952). 9

Management’s responsibility • The main responsibility for raising productivity in an individual organization lies with the management. • It can implement productivity programs. • It can create a positive environment and obtain co-operation of the employees. • Trade unions should encourage its members to provide such co-operation when the productivity program is beneficial to workers, as well as the organization on the whole. • We will look at management’s role in increasing productivity of individual resource: 10

Productivity of material At the design stage: • Ensure least consumption of material, • Purchase equipments and plants such that consumption of material is economical. At the operation stage: • Use of correct process • Right use of the process • Operator training • Proper handling and storage of products at all stages • Proper packaging to reduce damage in transit 11

Productivity of land, machines and manpower • Effective utilization and maximum productivity is an important source of cost reduction. • Reduction in the original specification, before the land is purchased saves capital outlay (as well as interest expenses) • A savings in material which has to be imported saves import duty and excise. • Productivity of manpower and machines is typically measured in terms of time (man-hours; machine-hours).

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Factors tending to reduce productivity Work content added due to the product for a manufacturing firm: • 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. • Excessive amount of material removal required.

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Factors tending to reduce productivity Work content added due to process • Incorrect production process (and/or machine) used • Process not operated properly • Non-optimal layout with wasted movements. • Working methods of operation causing wasted movements, time and efforts.

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Factors tending to reduce 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. 15

Factors tending to reduce productivity 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.

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Management techniques to reduce work content Nature of management • Management is the organization and control of human activity directed towards specific ends. • Management techniques are systematic procedures of investigation, planning and control which can be applied to management problems. • Systematic approach to the solution of the problems proceeds step by step from known to the unknown, always on the basis of ascertained facts. • Since management deals with human beings, it can never be completely scientific, and must partly be regarded as an art. 17

Reduce work content due to the product • Coupling of product design and process design phases (design products such that most economical processes can be used). • Pilot project/ prototyping to avoid mistakes at a advanced stage (very common in chemical companies). • Standardization of components. • Setting correct quality standards Stricter standards lead to increased manufacturing time, lenient standards lead to greater variability. • Knowing the customer – Management should conduct market research and consumer surveys to know the customer better.

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Reduce work content due to the method • Process planning – Identification of correct machines for the process. In chemical industry, this is specified by the R&D division or the license seller. • Process research – Identification of best manufacturing technique. • Proper maintenance. • Method study – Combine with process planning to give most suitable tools for the operative. Includes factory layout, working methods of the operative. • Operator training – Improve working methods of the operative.

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Reduce ineffective time due to the management • Strategic decisions – Which markets to enter can affect ineffective time to a great extent. • Production planning – It is planning of proper programs of work so that plant and workers are kept supplied without having to wait. • Proper programs should be applied only on the basis of sound standards of performance. • Work measurement – Setting up those standards. • Material control – Workers and machines should not be idle because of non-availability of material and tools.

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Reduce ineffective time within control of the worker • Training. • Make worker want to reduce ineffective time. (Create conditions to make the worker get on with his work. Hawthorne effect) • Effective personnel policy and management’s attitude towards the worker. • Good relationship between management and worker. • A sound wage structure, including incentive schemes (typically based on time standards derived from work measurement).

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Work study • Technique used in the examination of human work in all contexts, and which lead systematically to the investigation of all the factors which affect the efficiency and economy of the situation being reviewed, in order to effect improvement. • Two branches – method study and work measurement. • Widely known as “time and motion study.” • Rapid developments after World War II. • Huge Capital investment, in process R&D may increase productivity. However, it is expensive and time consuming. • Work study focuses on human and can increase productivity at a lower cost. 22

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WHY WORK STUDY? Example: • Goal of company: produce 10,000 parts per year • One work centre with multiple servers/operators will be deployed to establish this goal. • Each part requires three operations to be produced • All of three operations can be done by the same server/operator • Company works 2400 hours per year 24

• How long does each operation take? (Work measurement) • Time Study Results: (operation times in minutes) • Operation 1 Operation 2 Operation 3 5 min. 10 min. 12 min. • In total, to produce one part, it takes 27 min. in one server • How many servers/Operators required? 25

• Work centre with one server/Operator can produce in one year: 2400 X 60 -------------= 5333 Parts 27 Min/part • Required Production = 10000 parts • Hence No. of servers/operators required is 10000 parts ---------------- = 1.87  2 servers/operators 5333 parts 26

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Suppose if demand is increased to 15000 parts per year.

• How many servers needed ?  • if servers cannot be increased what else can be done? • Reduce the duration. By what percentage ? • Goal is to produce 15000 parts per year 2400 hrs/year X 60 Min X 2 servers ----------------------------------------------15000 parts/year • (27 – 19.2) / 27 Min = 28.8 %

= 19.2 Min

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Basic procedure of work study • • •

Select the job or process to be studied. Record from the direct observations everything that happens. Examine the recorded facts critically and challenge everything that is done.

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Develop most economic method taking in to considerations all circumstances.

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Define the new method

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Measure the quantity of work involved in the method selected and calculate a standard time for doing it..

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Institutionalize the new method and time as practice.

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Maintain the new standards by control procedures. 28

Work study • Since line managers are typically busy with the day-to-day activities, they can only look at work study during their free time. They should not be entrusted with the work study responsibilities. • Workers also ruled out because they usually lack the knowledge of the big picture. • Therefore, responsibility should be given to someone who can work full-time on work study, without direct management duties. • Someone in the staff and not a line position.

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Work study: A tool for management • Means of raising productivity (and efficiency) of the factory by reorganization of work. • Typically involves low or no capital expenditure. • Systematic process – Covers all aspects of raising productivity. • Very accurate in setting standards of performance. • Savings from work study start at once and continues as long as the improved operations are performed. • Applied everywhere: not only in manufacturing shops, offices, shops, stores, laboratories; and service industries like restaurants, etc. • One of the most penetrating tools of investigation available to management. 30

Work study: Beyond systematic • Should be applied continuously, and throughout the organization. • Basis of successful work study: complete intolerance of waste in any form – whether of material, time, effort or human ability.

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Method study • Method study – Systematic recording and critical examination of existing and proposed ways of doing work, as a means of developing and applying easier and more effective methods and reducing costs. • Method study is associated with the reduction of the work content of a job or operation, while work measurement is mostly concerned with the investigation and reduction of any ineffective time associated with it. 84

Objectives • Improvement of processes and procedures. • Improvements of factory, shop and workplace layout and of design of plant and equipment. • Economy of human efforts and the reduction of unnecessary fatigue. • Improvement in the use of materials, machines and manpower. • The development of a better physical working environment.

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Basic Procedure

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Selecting the work to be studied • Economic considerations Bottlenecks Movements of material over long distances Operations involving repetitive work • Technical considerations Relatively straight forward Based on the technical knowledge of the process • Human considerations Most difficult to foretell – because of mental and emotional nature. Select an unpopular job for method study. 87

Important considerations 1. 2. 3. 4. 5. 6. 7. 8.

Product and operation Person who proposed investigation Reason for proposal Particulars of the job Equipment Layout Product Savings and/or increase in productivity expected.

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Method study charts and diagrams • Charts indicating process sequence - Outline process chart - Flow process chart – Man, Material and Equipment type - Two-handed process chart

• Charts using a time scale - Multiple activity chart - Simo chart - PMTS chart

• Diagrams indicating movement - Flow diagram - Sting diagram - Cyclograph

- Chronocyclegraph - Travel chart 89

Method study charts and diagrams • Outline process chart: Is a process chart giving an overallpicture by recording in sequence only the main operations and inspections. • Flow process chart: A chart setting out the sequence of flow of a product or a procedure b recording all events under review using the appropriate chart symbols. Man-type – Records what the worker does Material-type – Records what happens to materials. Equipment-type – Records how the equipment is used.

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Out Line Outline

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Flow Diagram 93

Man type process flow chart • A flow process chart which records what the worker does. • Frequently used in the study of jobs which are not highly repetitive and standardized. • Service and maintenance work, laboratory procedure and supervisory and executive work can be recorded on this type of chart. • Since the chart follows one individual or a group performing the same activities in sequence, the standard forms are used. • Essential to attach a sketch showing the path of movement of the worker while carrying out the operation charted. • Written in active voice (e.g. worker “drills hole”) as against passive voice of other flow charts (e.g. “hole drilled”). 94

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String diagram A scale plan or model on which a thread is used to trace and measure the path of workers, material or equipment during a specified sequence of events. • A special form of flow diagram, in which a thread is used to measure distance. • Necessary that the string diagram be drawn correctly to scale, whereas regular flow diagram can be drawn only approximately to scale. • Start using the string diagram by recording all the relevant facts from direct observation. • Like flow diagram, it will most often be used to supplement a flow process chart. 99

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String diagram • Thus, string diagram and flow chart can give clearest possible picture of what is actually being done. • Flow process chart will be examined critically in order to make sure that all unnecessary activities are eliminated before a new method is proposed and tested using string diagram. • String diagram can be used to plot movements of material to know how far the materials travel. • Most commonly, the string diagram is used for plotting the movements of workers.

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String diagram: Process • A scale plan of working area similar to that required for a flow diagram must be made; as stated earlier, with higher accuracy. • Machines, benches, stores etc. should be drawn to scale, together with doorways, pillars, partitions. • Completed plan should be attached to a softwood board and pins driven into it firmly at every stopping point, the heads being allowed to stand well clear of the surface. • Pins should also be driven in at all the turning points on the route. • A measured length of thread is then taken and tied around the pin at the starting point of the movements. 102

String diagram: Process • It is then led around the pins at the other points of call in the order noted on the study sheet until all the movements have been dealt with. • The result is to give a picture of the paths of movement of the operators, those which are most frequently traversed being covered with the greatest number of strings. • By measuring the length of the thread, the distance traveled by the worker can be calculated. • Of two or more workers are studied over the same working area, different colored threads may be used to distinguish them. 103

String diagram: Analysis • Examination of diagram and development of new layout done in a similar fashion as with a flow diagram. • Pins and templates are moved around until an arrangement is found by which the same operation can be performed with a minimum movement between them. • This can be checked by leading the thread around the pins in their new positions, keeping the same sequence. • The length of the thread for the new layout is measured and compared with the length of thread for original layout. • Difference in length of threads represent the reduction in distance traveled as a result of improved layout. 104

Multiple activity chart • A chart on which the activities of more than one subject (worker, machine, equipment) are each recorded on a common time scale to show their interrelationship. • By using separate vertical columns, or bars to represent the activities of different operators or machines against a common time scale the chart shows the periods of idleness on the part of any subjects, during the process. • This makes it possible to rearrange these activities so that such ineffective time is reduced. • Extremely useful in organizing teams of operatives on massproduction work, also on maintenance work when scheduling expensive plant. 105

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Why charts? • • • • 5. 6. 7. 8. 9.

It gives a complete picture of what is being done and helps to understand the facts and its relationship to one another. Details on the chart must be obtained from direct observation. Should not be from memory. Neatness and accuracy important. Increased value if following is included: Product, equipment details (code#, drawing#) Job or process being carried out Location and time (date) of the study Observer’s name Chart reference number 108

Examine critically • Means by which each activity is subjected to a systematic and progressive series of questions. • Grouping of activities: Five sets of activities can be grouped in two categories • Those in which something actually happens to the work-piece (it is moved, worked upon or examined) • Those in which it is not being touched (in storage or in delay) • Objective is to maximize proportion of “do” activities. • All other activities, however necessary, are considered “nonproductive.” 109

Primary questions • • • • •

The PURPOSE for which The PLACE at which The SEQUENCE in which The PERSON by whom The MEANS by which ……………………….…………the activities are undertaken. With a view to ELIMINATING, COMBINING, REARRANGING, or SIMPLIFYING those activities.

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Primary questions PURPOSE

What? Why?

PLACE

Where?

SEQUENCE

When?

PERSON

Who?

MEANS

How?

ELIMINATE unnecessary part of the job

COMBINE wherever possible or REARRANGE the sequence for better result

SIMPLIFY the operation 111

The secondary questions PURPOSE

What else might be done? What should be done?

PLACE

Where else might be done? Where should be done?

SEQUENCE

When else might be done? When should be done?

PERSON

Who else might be done? Who should be done?

MEANS

How else might be done? How should be done? 112