A Quick Guide to Production Department

Introduction
Not quite sure if this book would be useful for you?
If you belong to any of the category of people mentioned below, then this book
is for you.
• Manufacturing Sector expects the engineers to be Job-
ready. However, the engineering curriculum does not
cover some of the basics required in the manufacturing
sector. This book would help in understanding the
basics, so that a fresh engineer can perform his role
immediately aCer joining the company.
Fresh Engineers
interested in joining
Manufacturing Sector
• This book can serve as an “InducIon Manual” for the
new Supervisors and Engineers in the shop ﬂoor. Job
ResponsibiliIes, Do’s and Don’ts for each role, Tools
and Techniques and MIS reports are explained for each
department. This would help in faster career growth.
Supervisors / Engineers
in the Shop ﬂoor
• This book can serve as a Quick Guide to teach you and
your employees, the basics of manufacturing
organizaIon. This would also help you in managing your
people, building the organizaIon to the next level by
creaIng strong processes.
Second GeneraIon
Entrepreneurs

Why this book?
• In India, several studies conducted on the employability skills state that
only 5% to 10% of the Engineers graduating from the Institutions are Job-Ready
/ Employable.
• Industries require workforce which are readily employable, so that they
do not have to spend a lot of money and effort on providing basic skills and on-
the-Job training
• While large organisations have Induction training for their employees,
many medium and small scale companies do not have proper structure to
provide this training
• Their employees work with very little awareness of the best practices of
the industry, making them frustrated, fire-fighting for day-to-day activities and
results in a lot of stress
• This also makes the companies uncompetitive, leading to poor business
performance, resulting in poor motivation of the people, and this becomes a
vicious cycle
• This publication is aimed at providing the fundamentals of manufacturing
management which are not offered by any of our institutions/curriculum to
Engineers and Diploma Holders who are joining Manufacturing Industry
• This is our initiative to empower the professionals in performing more
efficiently and effectively helping the organization and the nation
• In addition, this gives us immense satisfaction that we are giving
something back to the ecosystem we are working in and are able to challenge
the traditional way of thinking and practices.

What do we cover in the book?
A typical manufacturing company has Production, Production Planning,
Quality, Stores, Purchase, Maintenance, Finance & Accounts, Marketing,
Human Resources, Admin , Information Technology and Sales functions.
However, we would cover
1. Production
2. Production Planning
3. Purchase
4. Stores
5. Quality
6. Maintenance
functions in this book, since these are the major areas, an Engineer or a
Diploma/Degree Holder joins after his/her degree.

Structure of the contents
Each department / function is explained in the following structure:
• General Introduction to the Function / Department
• Organization Structure of the function
• Roles and Responsibilities of the key incharges
• Process Flow in the function
• Tools and Techniques required in the function
• Pictures and tables to demonstrate the activities (wherever applicable)
• MIS Reports and the Analysis to be done
• Key Result Areas (KRAs) and Key Performance Indicators (KPIs) for
each function

Introduction to Manufacturing
Company
A manufacturing company produces goods (or materials) using tools, machines,
chemical processing, biologic processing or formulation and with the use of
people. Manufacturing ranges from small hand-made products (Handicrafts
industry) to large / Hitech products (Aircraft / Bullet Trains).
A typical manufacturing company procures many parts/raw materials from
various suppliers (or Vendors), process them (discrete manufacturing or flow
manufacturing) and sell to its customers. These customers may be the end users
of the product or may use the products to make other products. For e.g. A glass
manufacturing company procures silica and other raw materials for making
glass. This can either be sold as end product to consumers (for home use) or to
an Automotive factory to use these glass for cars (of course, the grades would
be different).
In this book, we consider a typical manufacturing company consisting of a few
discrete manufacturing processes (e.g., Turning, Milling, Polishing, etc.).

There are various functions (or departments) in organisations, each focusing on
a few major activities.
1. Production Function - Focuses on the manufacturing of the product
2. Purchase Function - Focuses on purchasing / buying the raw materials
and consumables required for the production
3. Stores Function - Focuses on the receiving the incoming raw materials,
holding them properly and issuing them to the user department when there is a
need for the materials
4. Maintenance - To keep all the machines ready for production. To prevent
break-downs of machines,
Each function consists of a group of persons (or a single person) performing
their tasks.
A company is headed by the CEO / Directors / Owners depending on its
structure. Various levels of managers across various functions report to the CEO
/ Directors. Supervisors / In-charges report to the managers and they manage the
operators (shop floor employees across various levels)
Pic: 1.1 - Various Levels of Employees
CEO / VP / Promoter

Process steps that take time,
(VA)

A process step that transforms or
shapes a product or service, which is
eventually sold to a customer.
resources, or space, but do not add
value to the product or service.
Directors / Promoters
Managers (various levels)
Supervisors / Incharges
(various levels)
Operators / Employees
(various levels)
Senior Management Level
Middle Management Level
Junior Management Level
Employee Level

Internal and External
Customer
External Customer: A customer who buys the product / services of a
company. All the functions in an organization exist to fulfil the need of these
end customers. This customer is not a part of your organization but pays your
organization for the products / services.
Internal Customer: A member of the organization providing goods / services
for other members inside the organization. For e.g. Stores issues raw materials
to production. So Production function is a customer for Stores. Inside
Production function, each operation sends the product to the next operation thus
becomes a supplier to the next operation. These are called Internal Customers
and Internal Suppliers.
Pic: 1.2 - Internal Suppliers and Customers
Stores Production
Internal CustomerInternal Supplier

Goals of each department
Each department works with a set of goals which are aimed at satisfying /
exceeding their Internal / External customer’s needs. These goals are called Key
Result Areas (KRA’s) or Department Objectives / Targets.
Generally there are 6 major categories of objectives / KRAs:
1. Productivity
2. Quality
3. Cost
4. Delivery
5. Safety
6. Morale
These KRA’s needed to be measured through various Indicators. They are
called Key Performance Indicators (KPIs). For e.g. Productivity can be
measured by indicators like “output per person per day”, “Planned production
vs. achieved production”, “Utilisation of the machine”, etc. Similarly, Quality
can be measured by “Reduction in defectives”, “% of yield”, etc.
All the departments will have KRAs and KPIs to measure their performance.
Generally there would be a Monthly Review Meeting (MRM) to discuss the
performance and take corrective and preventive actions.

Introduction to Production
Function
•Production is one of the most critical functions in any manufacturing
organization. This function represents the set of activities through which the
product is made and delivered according to the client’s requirements.
• Production function normally encompasses various departments/shops based
on the type of products and the operations involved (e.g. press shop,
machining, polishing, plating, assembly etc.).
• The components move from each shop/machine to the other, once the required
operations are completed. (Sometimes the product would be stationary and all
the operations would be carried out on the product. E.g. Ship building).
• At each stage the component is added value (value addition) and transforms to
a finished product.
Pic: 2.1 - Value Addition Processes
Value Addition at every stage

Production Function
Department Structure
• This is a standard structure for Production Function
• Production Manager reports to the CEO of the company
• In a large organization, Production Manager might report to Factory
Manager / Manufacturing Head
• There can be a few Production Supervisors ( for different lines / processes /
shop floor) reporting to the Production Manager
• Each Production Supervisor would typically focus on a single / specific
processes or line
• (A typical functional hierarchy is mentioned here. It may vary according to
each organization)
Pic: 2.2 - Organization Structure of Production Function
CEO
ProducIon
Manager
ProducIon
Supervisor
ProducIon
Supervisor
ProducIon
Supervisor

Production Function
Responsibilities of Production Manager
• Productivity - Achieving the production targets set by the management /
orders given by the customers through optimum usage of the resources
(men/materials/machine). In some companies Production Planning would be
done by the manager.
• Quality - Meeting the Quality requirements set by the customer and
taking steps to exceed the quality requirements
• Cost – Minimizing cost ( reducing defects , process
modifications/improvements )
• Delivery - Overall responsibility of delivering finished goods as per the
customer’s requirements – Ensuring 100% on-time delivery
• Safety & Morale – Ensuring Safety of personnel and improving Morale
of the employees - by implementing rewards and recognition for Attendance,
Suggestion Schemes, Performance, etc.

Production Function
Responsibilities of Production Supervisors
•Planning for Production– Allocation of resources (Men/Machine/Materials)
properly so as to ensure smooth production flow and delivery
•Productivity – Ensuring a smooth production flow / dynamically monitoring
the production process and make necessary changes to achieve production based
on the requirements
•Quality – Measuring and analyzing the current quality levels and taking
necessary steps to improve and achieve the quality levels set by the
management
•Cost – Taking necessary steps to reduce costs – reducing defects / improving
processes
•Delivery – Ensuring 100% on-time delivery. Analysis of delays in deliveries
and improvement from the current situations
•Safety & Morale – Achieve 0% Accidents and Incidents(Near-miss).
Improving Morale of the personnel

How Production Department
Works?
Process 1:
• Production Plan created by the Production Planning department /
Production Manager and it is sent to the production supervisors
• Production supervisors plan for the day’s production based on the weekly
/ monthly production plan
Pic: 2.3 - Production Process 1

Works?
Process 2:
•Order-wise requirements of all materials (calculated from the Bill of Materials
(BOM)) would be obtained from the stores using Materials Issue Requisition
(MIR) slip
•Once the materials are obtained they are sent to the respective
process/machines for completion. The Supervisor also creates a job card for
each lot/item, which travels along with the product throughout the entire
processes.

Works?
Process 3:
•Producing right quality items is the responsibility of the operators of the shop
floor.
•Quality is measured at each stage so as to reduce reworks and rejections
(however, please note, Inspection by a separate inspector is a non-value added
activity and has to be eliminated. It might take a long time for a Small / Medium
size company to reach this goal)
•At the end of the production process, necessary quality checks are made and
the products are packed and delivered to the customers.
•Please note this is only the basic process. There may be delays / stoppages in
production due to quality issues, non-availability of materials, absenteeism, etc.

Shop Floor Management
Daily Production Plan
•Monthly Production plan is broken down into Weekly and Daily production
plan for each shop/operation by the Production manager and sent to the
respective Production Supervisors
•Production Supervisor should plan for one day’s production in advance. i.e.
tomorrow’s production plan should be planned today by the individual
supervisors (before office closing hours)
•Once the Production supervisors obtain the daily production plan, they should
plan & allocate the resources ( men, machine and materials) for the next day’s
production
•Resources and work allocation should be carried out in the previous day
evening
Pic: 2.6 - Production Plan Formulation

Shop Floor Management
Daily Production Plan
•Once the employees enter the shop floor, they should be able to pick up the
materials and start working. (If the production plan happens in the morning, the
company loses around 20 minutes before employees are allocated some job and
start working).
• Supervisor allocates the job to the right personnel and follows it so that
the production target for the day is achieved.
• In case of any changes in the plan, he/she consults with the Production
manager immediately and makes necessary changes in the shop floor
• He/she informs the employees and arranges materials accordingly
• At the end of the day, Production status is reported to the Production
Manager and the plan for the next day is done
Work should start immediately
(at the start of the shift)

Best Practices in
Manufacturing
Communication: Supervisors can use Whiteboards to update the daily
production requirement. Operators can see the whiteboards and start the
production (without asking the supervisors)
Team Work: Supervisors can create various teams in the companies (across
levels) for solving quality, productivity and delivery issues. These can be cross-
functional teams (from various functions)
Daily Production Meeting: Supervisors should conduct a daily / shift-wise
production meeting at the start of the shift (for 10 minutes). This meeting is
between the supervisor and the operators. In this meeting, supervisor explains
the planned production for the day, previous quality issues faced and how to
avoid them, any other updates from the company, etc.
Lean Manufacturing Principles: Supervisors should learn and implement
Lean manufacturing principles in the company such as Single Piece Flow, 5S,
SMED and many other tools. Lean Manufacturing helps in improving the
Productivity, Quality and On-Time Delivery thus increasing Customer
Satisfaction. Some of the tools of lean manufacturing are explained in the
coming section.

Lean Manufacturing
What is Lean Manufacturing?
•A systematic approach to identifying and eliminating waste (non-value-added
activities) through continuous improvement by flowing the product or service at
the pull of the customer.
•This is one of the most important knowledge a shop floor manager or
supervisor should know about
•Lean Manufacturing would help in improving the Productivity, Delivery and
Quality of the products and would help in reducing the costs
Pic: 2.7 - Value Added and Non-Value Added Activities
Value Adding Activity
(VA)

A process step that
transforms or shapes a
product or service, which is
eventually sold to a
customer.
Non-Value Added Activity
(NVA)

Process steps that take
time, resources, or space,
but do not add value to the
product or service.
Only the activities that bring
change to the product or service
(Physically or chemically)
NVAs are called “Wastes” in
Lean Manufacturing

7 Wastes in Lean
Manufacturing
Lean Classifies wastes into 7 major categories. They are listed below:
1. Transportation
2. Inventory
3. Motion
4. Waiting
5. Over Production
6. Over Processing
7. Defects

1. Transportation
Definition
• Any unnecessary material movement that does not support the lean
manufacturing system
• Please note, whenever a material is transported from one place to another,
there is no physical or chemical change happening in the material. So it should
be considered as a waste
How to spot this waste in the shop floor?
• Presence of multiple storage locations
• Multiple handling of materials
• Conveyors, Extra carts, forklifts, dollies, material racks
• Machines and processes not created for “Flow of the Products”
• Return of materials not used in production
• Batch processing and WIP present in the shop floor

2. Inventory
Definition
• Any unnecessary supplies or materials that do not support the ‘Just In
Time Production System’
• Note that whenever a material is stored as an inventory, there is no
physical or chemical change in the product. So it is a waste
• It is important to manage the inventory of a company as it helps in better
working capital management (more details in Purchase Section)
• However, the company may store higher inventory of some critical
materials (imported items / seasonal items)
• Multiple stores in the unit
• Extra space on receiving docks
• Build up of material between processes (WIP)
• Not using FIFO (first-in-first-out)
• Extensive rework when problems surface
• Additional material handling

3. Motion / Movement of
People
Definition
• Any movement of people which does not add value to the product
• Note that whenever a person is moving to take a material or a tool, there
is no change in the material. So it is a waste
• Work stations should be designed in such a way that all the required tools
and materials should be available to the operator (hands-reach) without bending,
climbing or twisting
• Searching for tools and parts
• Excessive reaching or bending
• Material too far apart (walk time)
• Extra equipment for moving parts
• Picking up things only to set them back down
• Large batch sizes
• Poor plant layout

4. Waiting
Definition
• Idle time in which no value added activities take place
• Person waiting for materials and machines
• Machine waiting for materials and persons
• Material waiting for machines
• People watching machines run
• Lack of concern for equipment breakdowns or downtime
• Long setup times
• Unbalanced operations (difference in cycle times)
• Inconsistent work methods
• WIP between processes

5. Over-Production
Definition
• Producing more than needed
• ‘Work ahead’ than the “Internal customer”
• Producing at a faster pace than needed, resulting in piling up of materials
as WIP
• Inventory stockpiles
• Extra or Over-capacity equipment
• Unbalanced material flow and confusion about priority
• Extra parts storage racks and manpower
• Building stocks ahead of demand
• Large lot sizes or batch processing

6. Over Processing
Definition
• Effort which adds no value to a product or service
• Work that can be combined with other processes
• Enhancements that are transparent to the customer (not valued by the
customer)
• Lack of clear customer expectations
• Lack of customer input concerning requirements
• Redundant approvals
• Extra copies and excessive information
• Inefficient policies and procedures
• Multiple Tests
• Multiple Inspections
• Multiple Counting of materials at various stages

7. Defects
Definition
• Repairing a product to fulfil customer requirements
• Reworking on the service, a customer asked for.
• Extra floor space, tools and equipment - for reworking
• Extra manpower to inspect, rework and repair
• Additional inventory
• Inconsistent quality
• Large number of scrap / defectives in the shop floor
• Incapable processes with excessive variation
• Inadequate tools or equipment for measuring
These are the seven wastes present in any organization according to lean
principles. Many of these wastes can be eliminated or reduced.

Lean Manufacturing
3 Types of Wastes (NVAs)
• Muda: Non-Value Added Activities (as explained in the previous pages)
• Mura: Process Variations / Inconsistencies in operation
• Muri: Physical Strain / Fatigue caused to the people or machines (by
overloading, poor working conditions, etc.)
Some of the Lean Tools used regularly in the manufacturing units are given
below. This book would cover only 5S in detail. Few other tools are given a
basic introduction.
Pic: 2.8 - Lean Tools

5S - Five steps for better
workplace management
• 5S is fundamental to all improvements
• A set of five words starting with “S” – about good housekeeping
• Five steps to the culture of keeping the work place clean,
organized, systematic and safe
• A foundation for all improvements and Lean Journey
• Every employee is engaged and empowered.
• Reveal the wastes and their causes in the process not seen
by observation.
• To put it simply “Work Place Organization”
• It is a Continual Process
CULTURE
OF THE
COMPANY
1. SORT
Separate Items
which are required
and unwanted.
Dispose unwanted
items
5. SUSTAIN
Regular Audits,
Internal
Competitions,
Rewards and
Recognitions.
Continual
Improvement
2. SET IN ORDER
Arrange all items
based on the place of
requirement.
Facilitate easy
retrieving
3. SHINE
Keep the workplace
clean (everyday).
Follow Preventive
Maintenance
4.
STANDARDIZE
Create Visual
Indicators, SOPs
and ensure training
for all employees
regularly
Pic: 2.9 - 5S and
its explanation

Steps in implementing 5S
STEPS EXPLANATION
1S SORT
Separate items which are required and not-required.
Dispose the items which are not required
2S SET IN ORDER
Arrange all the required items based on the place of
requirement. “A place for everything and everything
in its place”
3S SHINE
Clean your machines, workplace daily. Follow a
cleaning schedule. Follow Preventive Maintenance
for machines
4S STANDARDIZE
Ensure all the above 3 steps are followed by all the
employees in the company. Create Visual
Indications, SOPs so that the best practices don’t slip
back to original condition.
5S SUSTAIN
5S becomes a culture of the organization. Regular
audits, training, competitions, rewards and
recognitions ensure that 5S sustains in the
organization. There is no end to 5S and has to be a
part of continual improvement

1. Sort
Removing unwanted items from the Workplace
• Take Pictures of the area and display in a notice board
• Include all the members in the area for segregating required and not-
required items in their workplace
• All the unwanted items to be sent to a Red Tag Area with a red tag
mentioning the date, item name and why it is not required
• Senior Management to focus on disposing the items in the Red Tag area
• Items that are required only would go to the subsequent steps
How to Sort?
• Determine red tagging criteria for all non-moving items
• Designate red tag holding area in the stores separately
• Identify person responsible for holding area
• Obtain red tags
• Talk to area workers
• Perform red tagging and record tagged items in log book

2. Set In Order
Arrange the necessary items in a specific place (based on the usage)
• After Sorting out the unnecessary items, the needed items have to be
classified by use and arranged as following:
• To minimize search time and effort
• To facilitate easy return and retrieval
• Place each item in a designated address
• In simple terms - “A place for everything and everything in its place”
Frequently
Used Items
Moderately
Used Items
Rarely Used
Items
Store it in the Point of Use
Store it at a small distance
Store it in a central location /
store

2. Set In Order
Few examples to show how the tools can
be arranged near the machines / Point of
Use
Pic: 2.10 - Images for Set In Order

3. Shine
Clean the machines, Shop floor and Inspection - Everyday
• This involves cleaning the work place including machines, tools, floor,
walls and other areas.
• On cleaning, a lot of abnormalities like cracks, loose nuts, bolts, oil
leakage, loose wires, etc. can be detected and rectified
• Follow Preventive Maintenance Check list provided by the Machine
Manufacturer - as per the schedule
• Cleaning is inspection and a health check
• Clean your workplace everyday - for 10 minutes
• Maintain a cleaning schedule at your workplace
How to Shine?
• Give 10 minutes every day (start and end of the shift) to all the operators
for cleaning the machines and the shop floor
• It is the responsibility of the shop floor employees to keep the factory
clean
• Managers and Supervisors should also be present and perform the
cleaning in their respective areas

4. Standardize
Follow the first 3 steps every day. Ensure all the employees can easily follow
the 3 steps by providing visual indications, pictures, colour codes, etc.
• Maintain all the above “3S” regularly by providing Visual Controls,
SOPs, Training and use of colours for identification
• This stage is when 5S become systematic and starting to become the
culture of the organization
How to Standardize?
• Each area would have a person responsible for 5S
• Provide Visual Indicators in the shop floor
• Give Colour coding for the tools / raw materials and WIP items
• “Before” and “After” pictures can be displayed
• Standard Operating Procedures (SOP) to be created in local languages
and all operators have to be trained on the same
• Use whiteboards to display order status

5. Sustain
Follow the 4 steps every day. Conduct regular audits, internal competition
between different zones. Encourage participation of the employees
• 5S becomes a part of the every day work and becomes a culture of the
company
• The greatest benefits of 5S are to help people to focus and acquire Self-
Discipline. People’s behaviour is a reflection of the environment
• Conduct regular 5S audits and recognise the teams and give them
rewards. Conduct 5S Slogan Contests, Internal competitions, regular training to
employees (by employees)
• Everybody should feel proud to take part in 5S
How to Sustain?
• Senior Management participation is very essential for the sustenance of
5S
• Regular discussions with the employees on improving 5S in the factory
• Displaying the 5S Audit results
• Providing a healthy and safe work place

Lean Tools - Single Piece
Flow
Producing in Batches lead to high Work In Progress (WIP)
• Single Piece Flow reduces WIP and improves Quality, and generates
more space.
• Quality will improve in Single Piece Flow because, internal customer
immediately notices the defect whereas in batch production, the defect is
noticed after the entire batch is produced
Batch Production
Single Piece Flow Production
• Less WIP
• Improvement in Quality
• Less space utilization
Pic: 2.11 - Batch Production Vs. Single Piece Flow
Operation 1
Operation 2
Operation 3
Input
Output
Input
Input
Output
Output
WIP in all operations, More
transportation and space
utilisation
Operator 1
Operator 3
Operator 2
Operation 1, 2 & 3
Input Output
Operator 1 Operator 2 Operator 3

Lean Tools - Single Minute
Exchange of Dies (SMED)
• In a single piece flow production, there is a need to quickly change from
one SKU/article production to another (delay in changing over, reduces the
overall output)
• So the question is, how quickly can a change-over be done, so that the
line does not stop for long time?
• Single Minute Exchange of Dies (SMED) is a tool helps in reducing the
change-over time between articles
• Change-Over / Set-up time is the time taken between the last good piece
(of the previous article) to the first good piece (of the new article). This includes
the time taken for checking the quality
How to do SMED?
• Take a video shoot of the current change-over process
• Analyse the video (with the persons in involved in the changeover)
• Separate Internal and External activities. Internal activities are done
inside the machine (e.g. Tool change) and External activities can be done
outside the machine (e.g. Arranging the tools required near the machine)
• Reduce the internal activities and eliminate the external activities
• Practice and record the “Before” and “After” changeover times and
gradually reduce them to less than 1 minute

MIS Reports
The list below explains the various MIS Reports to be generated in the
Production Function. Please note this is only a guideline, List of MIS reports
vary across organisations.
Report – 1
Report
Name
Monthly Production Report
Nature of
Report
Product-wise / order-wise
Frequently Monthly
Who
Prepares it
Production Supervisor
Analysis
Points
What is the achievement against the plan? For each product /
product categories ? Is there a trend that week-end production is
higher than other days? Last week's production is higher than
other week's production? Why? How to avoid this in the future?
Report – 2
Report
Name
Monthly Rejection / Rework Report
Nature of
Report
Frequently Monthly
Who
Prepares it
Production & Quality Supervisors
Analysis
Points
What is the rejection rate / rework rate? Is this monitored
frequently? What is the pareto of defects? How long the major
defect is figuring in the list? When and How, it will be resolved?

MIS Reports
Report - 3
Report
Name
Daily Production Report
Nature of
Report
Frequently Daily
Who
Prepares it
Analysis
Points
Achievement of day's production vs. planned target. Are there any
bottlenecks in achieving the target? If any product does not meet
the plan, move it to the next days' plan? Any quality issues faced?
How the issue is solved? What is the corrective and preventive
solution?
Report - 4
Report
Name
Delivery Performance Report
Nature of
Report
Frequently Monthly
Who
Prepares it
Analysis
Points
What is the delivery performance against the customer orders?
How many orders are delivered On-Time-In-Full (OTIF).( OTIF
means, all the customer's orders have been sent on time and the
full quantity ordered )

MIS Reports
Report-5
Report
Name
Accident / Near Miss Report
Nature of
Report
zone-wise / operation-wise
Frequently Monthly
Who
Prepares it
Analysis
Points
How many accidents occurred in the month? How many near-
miss happens in a month? Are they being recorded? How to
eliminate the accidents in the future? Corrective and Preventive
Action?
Report-6
Report Name 5S Audit Report
Nature of
Report
5S scores of various zones
Frequently Monthly
Who
Prepares it
Analysis
Points
Are the shop floors looking tidy and clean? Is it visibly
managed? Is the area free of dust? Are the machines cleaned
daily?

What are the KRAs and KPIs
of your department?
Goals /
KRAs
Performance Indicators / KPIs Measure
Current
Level
Target
Productivity
Achieving Monthly Production
Targets
in % 85% 100%
Productivity
Achieving planned export orders
production
Quality Reducing Rejections in PPM 5000 1000
Quality Reducing Reworks in PPM 20000 10000
Delivery Achieving On-Time Delivery in % 90% 100%
Prepare your department’s KRA’s in case your organization does not have
them.

Learning’s from the Section
Now that you have completed this Production Section, Are you clear on the
following?
• Key Processes in the Production Function
• Roles and Responsibilities of Production Team Members
• Shop Floor Management
• Difference between Value Added and Non-Value Added Activities
• 7 Wastes of Lean Manufacturing
• Importance of Single Piece Flow Manufacturing
• Implementation of 5S at the shop floor
• MIS reports to be generated and the analysis to be done

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Meet the Author
Ananth is the CEO and Founder of Hash Management Services LLP. Ananth
has over 12 years of experience in the areas of Implementation of Lean
Manufacturing concepts, Quality Management, and Supply Chain Management
initiatives. Some of the industries he works/worked with are Textiles, Leather
and Footwear, Castings and Forgings, Electronic Equipment, Pump
Manufacturing, Fabrication, White goods, Heavy Engineering and Light
Engineering sectors. He works with Industry bodies like CII, FICCI and
currently working with International Labour Organization (ILO) for
implementing their SCORE Program in a few auto ancillaries in Chennai. He is
also an empaneled Lean Manufacturing Consultant (LMC) with National
Productivity Council (NPC) and working on Implementing Lean Manufacturing
principles for Small and Medium Enterprises.
Prior to Hash Management Services LLP, he was a consultant with Deloitte`s
consulting practice in India. Earlier, Ananth worked with Titan Industries Ltd,
as a Senior Engineer responsible for productivity improvements and various
quality initiatives. He holds PGDM from the IFMR, Chennai and a Bachelors
degree in Mechanical Engineering from the Government College of
Engineering, Tirunelveli.
Please visit www.hashllp.com to know more about the ways we help
manufacturing companies improve their operations and profitability.

Disclaimer
The advice contained in this material is for a specific audience and not for
general public. The author designed the information to present his opinion about
the subject matter. The reader must carefully investigate all aspects of any
business decision before committing him or herself. The author obtained the
information contained herein from sources he believes to be reliable and from
his own personal experience, but he neither implies nor intends any guarantee of
accuracy. The author particularly disclaims any liability, loss or risk taken by
individuals who directly or indirectly act on the information herein. The author
believes the advice presented here is sound, but the readers cannot hold him
responsible for either the take or the result of those actions.

Acknowledgements
This book would not have been a reality without the contribution from V N
Shiju who worked with me on creating the contents, L S Kannan contributed
Quality section, Veerabaghu, my mentor and guide, my wife Jeyalakshmi who
helped me in documentation, A S Senthil Kumar, my first boss who helped me
understand the basics of manufacturing industry, my colleagues at Deloitte and
all my friends who stood by me during some of the toughest times in my life.

A Quick Guide to Production Department

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