Chap 2
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Transcript of Chap 2
Reasons for lost output
• Absenteeism• Poor work methods (affects performance &
efficiency)• Low operator performance• Poor operator utilisation• Style change is not itself a cause of lost
output, it can cause all or some of the above!!
Definitions
• “On –standard” : that time the operator spends on “measured” work earning Standard Minutes.
• “Off-standard” : that time the operator spends on “un-measured” work or “measured” work that is classified as “off-standard”.
Definitions- “Measured work”
• That work to which a standard measure (SMV, SAM) has been applied.
• An operator may be learning a new operation may be taken as off standard for payment purposes but will still be contributing SMs as the operation they complete will have SMV applied.
SMV/SAM?
• Standard Minute Value (S.M.V.) is the time allocated through work measurement for an operation to be completed at a 100 rating.
• Standard Allocated (Allotted) Minute (S.A.M.) is an S.M.V. + any policy allowances added.
Definitions: Operator Performance
• Primarily a measure of the effectiveness of the individual operator
• = SMs earned “on standard” x 100 Time spent “on standard”Sometimes referred to as “Pay” performance as
it is usually measured within an incentive scheme.
Definitions- Efficiency• Incorporates elements of operator
performance & utilisation into the single measure.
What is Capacity planning
• How many garments can a section produce?• How many operators/machines do we need
to produce a given number of garments?
Information needed for capacity planning
• SMVs/SAMs/Std. hrs• Available operators• Contracted hours• Absenteeism levels• Efficiency levels
SAMs, SMVs
• Are they accurate? • What operations do they cover?• What operations are unmeasured or
performed by indirect operators.
Capacity planning - people
• How many garments can a given number of people produce?
• Number of operators• SMV (Labour content)• Absenteeism• Efficiency/ inefficiency!
Capacity planning – example
• 500 direct operators working 48 hours/week• S.M.V. = 25 per garment• Absence level of 8%• Average efficiency of 85%1. Calculate standard hour/minutes that can be
produced by operators.2. Calculate how many garments that represents
Capacity planning – example
• 500 operators x 48 hours = 24000 contracted hours• 24000 – 8% (1920 hours) absence = 22080 attended
hours (absence costs 40 operators)• At efficiency of 85% std. hours produced = 22080 x
85% = 18768 std hrs.• 5232 hours lost to absence & inefficiency.= 21.8% of original contracted hours
Capacity planning – example
• 18768 std hrs produced• S.M.V. = 25 mins. or 0.417 std. hrs.• Garment capacity = 18768 0.417= 45007 garments.
Capacity planning-machines example 2
• Auto pocket set machine• S.M.V. 0.60• Efficiency = 95%• 15 machines available• 8.50 hour day• How many garments can they supply to
sections?
Capacity planning-machines- example 2
• 15 machines x 8.50 hours = 127.50 hours/day.• @95% efficiency std. hrs produced = 121.13 hrs• SMV = 0.60 = 100 per hour at standard• Output = 100 x 121.13 = 12113 garments• Absence ignored if decision taken to ensure absence
cover (15 machines + 8* absence = 16.2 operators. 1 spare operator required
Capacity planning-machines- example 2
• Capacity must be increased to 25000 per day.• Each machine does 100 x 95% = 95 per hour.
25000/95 = 263.15 hours. In 8.5 hour day = 31 machines
• However machines cost $75000 each and have a six month delivery lead time.
• Try again!!!
Example 3
Capacity planning- Department• Cutting room using semi-auto spreading machines
and computerised cutting head.• SMV for spreading = 0.1584 per metre• SMV for cutting = 0.050 per metre• Average fabric content per gmt. = 90 cms.• Standard working day= 8.50 hours (39 week)• 3 spreading machines on 4 tables• 1 cutting machine.• Department runs at 90% efficiency and 8% absence
Capacity planning- Exercise
• How many people are needed to supply the factory with 50000 garments per week?
• What is machine requirement for 50000 garments per week?
• What do you recommend if production cut to 24000 garments per week?
• All operators are able to use both spread and cut equipment.
Capacity planning-spreading
• 50000 garments x 0.90 metres = 45000 metres to be cut each week.
• Each metre Smv = 0.1584 therefore 45000 x 0.1584 = 0.1584 x 45000
60= 118.80 std.hrs required@ 90% efficiency = 132 operated hours.
Capacity planning- cutting
• 50000 garments x 0.90 metres = 45000 metres to be cut each week.
• Each metre Smv. = 0.05 therefore 45000 x 0.05 = 0.05 x 45000
60= 37.5 std.hrs required@ 90% efficiency = 41.70 operated hours
Capacity planning –cutting room
• Spreading 132 hours needed over 3 machines• Cutting 41.70 hours needed.• Total operating hours = 173.9• Absence = 8% = 189.02 contracted hours
operator req =189.02/39 = 4.8 (5) people at 39 hour week.
PLANT CAPACITY
• Maximum capacity—Total hours available under normal conditions in a given period of time
• Potential capacity—Maximum capacity adjusted for efficiency
• Committed capacity—Total hours previously allocated for production during a certain time period
PLANT CAPACITY
• Available capacity—Difference between potential capacity and committed capacity for a certain time period
• Required capacity—SAHs (standard allowed hours) necessary to produce a specified volume in a certain period of time
• Excess capacity—Difference between potential capacity and required capacity
PLANT CAPACITY
• CASE STUDY• Stitch Taylor operates a small apparel contract
sewing business that employs 10 operators who work 7 hours a day. The plant has a 90% efficiency factor.
• A customer brought in an order for 6,000 units of style A that needs a 10-day Lead time. The plant has the appropriate equipment and skills available to make the style.
PLANT CAPACITY
• The plant has a committed capacity of 300 hours for the 10-day period. Style A has a production time of 5 SAMs.
• The order for 6,000 units requires 30,000 SAMs or 500 SAHs.
• Which factors should be considered in deciding whether to accept the order?
PLANT CAPACITY
• What is the potential capacity of Stitch Taylor's plant for the 10 working days? 630 hours
• 70 working hours per day x 90% efficiency = 63 potential production hours per day 63 potential production hours per day x 10 days = 630 hours potential capacity
PLANT CAPACITY• What is the required capacity for the order? • 5 SAMs per unit x 6,000 units = 30,000
SAMs/60 minutes per hour = 500 SAHs for the complete order
• Is there adequate potential capacity for the order? Yes
• 630 hours potential capacity - 500 hours required capacity = 130 hours excess capacity
PLANT CAPACITY
• What is the available capacity in the specified time frame? 330 hours
• 630 hours potential capacity - 300 hours committed capacity = 330 hours available capacity
• Is available capacity adequate to accept the order? No
• 330 hours of available capacity - 500 SAHs of required capacity = -170 SAHs
PLANT CAPACITY
• What adjustments might be made to make adequate capacity available?
• 1. Expedite the new order so it would have priority over previously committed orders.
• 2. Require operators to work overtime to get order completed.
• 3. Offer operators a bonus if the group can average over 100% efficiency for 10 days.