STANDARDIZATION

What is Standardization?

The development and application of a standard for a particular product or type of component or range of products or components or a given procedure.

Benefits of Standardization

Benefits of Standardization

The main criteria for international standardization are:

- Improvement in universal technical communication and mutual understanding;

- Facilitation of international exchange of goods and services;

- Removal of technical barriers to trade;

- Transfer of technology.

Benefits of Standardization

- Uniform terminology is created

- Sizes and dimensions are co-ordinated and adapted

- Variety is reduced

- Function requirements and characteristics are specified

- Unambiguous testing methods are established

Benefits of Standardization

• For product standards the benefits may be broadly summarized under the headings variety reduction, interchangeability, and availability.

• The effects of variety reduction are well known and can mostly be assessed in terms of hard cash, taking due account of the additional cost reduction effects on associated parts and operations.

• Interchangeability as a result of standardization leads to higher productivity and lower manufacturing costs. These benefits are relayed to the users as a result of increased competition. lnterchangeability is also very important to erection, installation, maintenance, and repairs.

• Easy availability implies that an adequate number of varieties are always in stock. This means shorter lead times and less capital tied up on the user side.

The Universe of the Standardization

International

Regional

National

Sectoral

Company

Terminology

Technical Specifications

Sampling and control

Testing and analysing

Reduction of the variety

Grading

Codes of Good Practices

Electrical

Food industry

Agriculture

Forestry

Textile industry

Chemical products

Information Technology

Education and Training

Management

Benefits of Standardization

• Relationship between standardization at company, national and international levels.

• It should always be remembered that it is on the company level that the actual implementation of standards take place.

Work Standardization

• A detailed and documented system in which production workers both develop and follow a repeatable sequence of tasks within a work assignment.

• The standardized work sequence represents the best practices for the operator to follow in the completion of his/her job.

• Takt time – Demand Rate• Cycle Time – Production Time• Work Sequence

Elements of Work Standardization

Takt Time - the demand rate of production, the rate at which we sell our product or service.

What is Takt Time?

Process Instruction Sheets Standardized Work Analysis

Sheet (Cell Layout) Time Observation Sheet Operator Balance Chart Standard Work Combination

Sheet

The Tools for Work Standardization

Process Instruction Sheets

• Detailed, visual instructions written from the perspective of the operator which detail the sequence, methods, tools required and critical to quality characteristics of an operation.

Standardized WorkCell Layout

• Detailed, visual representation of the location of everything in the work cell, including workstations, parts racks and storage areas, and operators.

• Used to plan the layout of cells, analyze the amount of walking built into the process and to institutionalize improvements

Operator Balance Charts

A graphical representation of the times required by each operator in a cell to complete their individual work elements.

Operator balance charts are used to distribute work and ensure work is being completed near takt.

Standardized Work Combination SheetPart Number

Part Name

Work SequenceOperation Time (seconds)

Man Auto Walk 5 Sec 10 Sec 15 Sec 20 Sec 25 Sec 30 Sec 35 Sec 40 Sec 45 Sec 50 Sec 55 Sec 60 Sec 65 Sec 70 Sec 75 Sec 80 Sec 85 Sec 90 Sec 95 Sec 100 Sec 105 Sec 110 Sec 115 Sec 120 Sec

1Obtain Manifold from conveyor 15 5

2 Place in Wash Tub 10 1

3Press Button to start wash tub 1

4 Wash Tub Cycle 10 10

5Obtain Manifold from wash tub 6

6Place manifold on work bench 2 5

7Obtain 4 valves from stock area 2 5

8Remove packaging from valves 10

9 Place valves on manifold 8

10Obtain screws and hand tighten 7

11Obtain torque wrench and torgue to 50 ft lbs 3

12Record torque values on tracker 8

13 Mask off valve assembly 9

14 Aside to pallet 4

15Move to conveyor to start next assembly 5

95 10 21

Date Prepared 10-Mar-05 Daily Demand

Step Operation

Time

231 Units

HT Injection Manifold Work Area Manifold Assembly Takt Time 117 Second

98-097-654

What is process standardization?

Definition of process standardization:

“The degree to which work rules, policies, and operating procedures are formalized and

followed.”

Objective of process standardization:“To make process activities transparent and

achieve uniformity of process activities across the value chain and across firm boundaries.”

Why Process Standardization?• Reduces costs:

– Lowers salary costs due to collaboration between different units (employees can fill in for each other)

– Lowers overhead costs due to sharing documentation and training materials across the organization

– Reduces materials costs (ordering larger quantities of standard parts and materials provides purchasing leverage where buyers can benefit from suppliers economies-of-scale and arrange more frequent deliveries, to support just-in-time operations)

– Reduces inventory levels (aggregating demand for parts and supplies enables the safety stock and inventory levels to be reduced)

– Reduces material overhead (time spent to procure standard parts and materials, which are more common, more readily available, and have more sources)

– Lowers IT costs due to supporting similar information systems across the organization (no “one off” applications being used)

• Increases quality:

– Reduces variability in product / service quality, as all employees perform the process in a similar manner

– Achieves more consistent results and outcomes, driving world-class performance

– Improves product / service quality, as employees make fewer errors when they understand how to do their jobs

– Improves product / service quality through the use of continuous improvement and sharing of best practices

Why Process Standardization?

• Reduces cycle time:

– Reduces rework and inefficiency - less work at business unit level as processes are developed once instead of ten times

– Improves average cycle time through risk pooling (aggregating demand for parts and supplies across locations means that high demand from one area can be offset by lower demands from other areas, leveling the demand and reducing the risk of running out of parts)

Why Process Standardization?

• Improves organizational management:– Facilitates early identification and proactive management of risks

– Improves accuracy of estimates

– Improves external relations, as the company presents a single face to its suppliers and customers

– Provides a stronger foundation for any organizational restructuring, as processes are similar across similar job functions

– Improves knowledge management (more opportunities to leverage and reuse knowledge)

– Facilitates knowledge sharing and applied learning across organizational boundaries

– Facilitates various organizational reviews (e.g., SOX reviews)

– Increases organizational flexibility, as resources such as people and assets can be reassigned according to market requirements

– Improves employee retention, as people understand their jobs and what’s expected of them

– Enables implementation of process control methods (collecting similar metrics and reporting on them)

Why Process Standardization?

Steps for Process Standardization

1. Clarify the purpose of the standardization effort (e.g., reduce product cost, increase product quality, improve product cycle time)

2. Identify which aspects of the process need to be standardized to achieve the stated purpose

3. Document a single version of the process

4. Use impact analysis to identify consequences for the organization, e.g., equipment or paperwork changes required

5. Identify and document any training needs based upon standardized process design

6. Develop a plan for implementing the standardized process

7. Train employees in the new process

8. Roll out the new processes to the various regions

9. Identify decision authority for future modifications to the standardized process design

Product Standardization

The process of setting generally uniform characteristic for a particular good

or service.Product standardization among the goods

provided by different businesses operating in technology-based industries can be useful

for consumers since it permits competition among the

various suppliers.

Product StandardizationAlthough there is increasing demand for local variety as economic growth takes place and as anti-globalization sentiment spreads, global products and brands are usually standardized in some ways.

Global product examples•Gillette razor blades•Sony television sets•Benetton sweaters

Regional products and brands are unique to a particular trading region

•Honda’s European car model “Concerto”•P& G’s Ariel and Vizir in Europe

The Pros & Cons Of Product Standardization

• The Advantages of Standardization– Cost Reduction

• Scale economies (input and process)• Scope economies (synergy, brand equity)

– Improved Quality (reliability)• Better equipment, more experience

– Enhanced Customer Preference (no surprises)– Global Customers (mobility)– Global Segments (convergence)– Time to Market

• Centralized R & D

The Pros & Cons Of Product Standardization (cont’d)

• The Drawbacks of Standardization– Lack of Uniqueness– Vulnerability to Trade Barriers

• More barriers, less standardization

– Strong Local Competitors

Basic Requirementsfor Product Standardization

• Localization is a hygiene factor (price of admission)

• Adaptation is a motivator (add value and attractiveness)

– Compatibility Requirements• Localization represents the adjustments in the product

specifications necessary for it to function in the foreign environment

– Multisystem Compatibility• In many products today, localization is accomplished by

building in compatibility with multiple systems at the outset

Uniform vs. Adapted Product

PREFER

REJECT

Uniform Localized

Adapted

Line shows likelihood

of Purchase

Optimal Level Of Standardization

Incremental manufacturing cost

Combined costs Cost of lost sales

Fully

adaptedFully standardized

What To Standardize?

• 100% standardization is rare

• Usually starts with a core product as the foundation

• Various features are added, these may differ according to the country market

• Can also involve modular design, where various features are packaged as modules, different assembly combinations in different markets

Methods To Standardize

• Modular Approach– Mix and match common components (Ford)

• Core-Product (Platform) Approach– Uniform base– Attachments added to localize

• John Deere – 6 ‘families’ (platforms)• Electrolux – 15,000 products

Thank You