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PRODUCTIVITYIMPROVEMENT
Raden M. Manlambus
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Learning Objectives
To understand the key requirements of a
Productivity Improvement in general.
To understand the Productivity Improvement
Program through Lean Manufacturing Systems.
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Definition
Productivity Improvementis defined as achieving
more or better economic
returns for the same orfewer inputs, in a
sustainable manner.
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Simple Equation
Productivity a measurement of output per
unit of the factor used (labor, capital or land)Total Output
Productivity = -------------------
Units of Factor
Technical Efficiency output produced using
the fewest possible inputs
Productive Efficiency output produced at the
lowest possible cost
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Productivity Improvement results from a
range of initiatives including
improvement of;
Processes and systems
Management systems
Workplace management and culture
Quality
Strategic planning and communication
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Essentially, productivity is a ratio to measure
how well an organization (or individual,
industry, country) converts input resources(labor, materials, machines etc.) into goods
and services.
This is usually expressed in ratios of inputs
to outputs. That is (input) cost per (output)good / service. It is not on its own a measure
of how efficient the conversion process is.
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Achieving more output for the same input
Achieving the same output from less input
Achieving much more output for slightly
more input
Getting slightly less output for much less
input
How Productivity is
Improved
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There are six lines of attack to improve
the productivity ratio of an organization,
namely:
Improve basic process by research and
development (long term)
Improve and provide new plant, equipment, andmachinery (long term)
Simplify product and reduce variety (medium
term)
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There are six lines of attack to improve
the productivity ratio of an organization,
namely: (cont.)
Improve existing methods and procedures (short
term)
Improve the planning of work and the use ofmanpower (short term)
Increase the overall effectiveness of employees
(short term)
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Productivity Improvement Topics
Competitive
Manufacturing Just in Time
Business Process
Re-engineering
Value Stream
Mapping
Others
LEAN for
manufacturing LEAN for service and
public sector
organizations
Five Ss
Six Sigma
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Productivity Improvement
Program Through Lean
Manufacturing
Lean is an approach to achieving manufacturing
excellence based upon the continued elimination
of waste.Waste
is defined as activities that donot add value to the product.
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Value Added Activities:
Transform raw materials and
information into parts or products.
Non Value Added Activities:
Consume resources that do not
contribute to the physical change of theproduct.
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What is Lean Manufacturing?Eliminating Waste
Waste in Operations: walking, searching,
standby, rework, changeover
Waste in Layout: travel distances,
backtracking, crowded conditions, redundant
handling
Waste in Flow of Goods overproduction, W.I.P.,
Failure to meet std output per hour person
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Cont.
Eliminating Waste
Waste in Equipment Line stops, broken
down / antiquated, poor production yields
Other Waste poor housekeeping practices,
damaged materials, improper tools, nothaving the right information.
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Lead time reduction is achieved
by identifying
and eliminating waste
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WhyLean Manufacturing?
In Todays Environment the MarketDemands:
Low Costs / Price
High Quality
Greater Variety of Products
Faster Response Times
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Pressures Requiring Companies
To Become Lean
1. High Cost Labor
Material
Burden - Overhead2. Poor Quality
Internal between depts. & processes
External rework due to vendors
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Pressures Requiring Companies
To BecomeL
ean3. Late Delivery
Internal Customers on time to satisfy requirements
External Customers- on time to satisfy requirements
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Lean Manufacturing Checklist
Data Integrity: Inventory accuracy 95%
B.O.M. accuracy 99%
Routing accuracy standards & process
Education: All operators trained in Lean
Individual operators
All functional organizations are represented on
Teams
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Cont.
Material Flow:
Weekly delivery of 80% of materials
delivered to Point of Use
Parts are produced only at the quantity
required Continuous Flow Manufacturing is
prevalent throughout
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Cont.
Quality:
All inspection sequences have been
eliminated source inspection practiced
whenever possible
Q.C
. departments are replaced with processaudit functions
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Planning: Daily Rates and level scheduling established and
met on due date MRP system is used for internal planning,
customer committing, and vendor schedules and
capacity planning
Management participates in the planning andreplanning process and commits to a realistic
capacity level
Customer service 100% as committed and
production equals demand
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Process Changes:
Single digit setups established
Where feasible work orders are eliminated
or simplified and
priorities controlled by Demand Pull
All functional organizations are representedon Teams
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Process Changes: Reduction in the number of active vendors and
they are part of the production planning process
Simplify Manufacturing Process to;
Provide management by sight
Identify and surface problems with immediate resolution
Manufacturing is actively involved in the design ofthe product for manufacturability
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The End Result
A Dynamic workforce that ;
Is Focused on Continuous Improvement
Is Biased ForAction
Puts Creativity Before Capital
Is Totally Involved