Improve Workplace Productivity with Basic Tools

10/15/2018
AKS PRODUCTIVITY PRACTIONER : BASIC TECHNIQUES

PRODUCTIVITY PRACTIONER: BASIC TECHNIQUES
AMIT KUMAR SENAPATI PMP®
Contents
1.0 Introduction............................................................................................................................5
1.1. PRODUCTIVITY AS A TECHNICAL CONCEPT.............................................................................5
2.0 why dowe need to measure productivity?................................................................................6
3.0 BASIC PRODUCTIVITY IMPROVEMENT tools...............................................................................7
3.1 5S .......................................................................................................................................7
3.2 Suggestion Scheme..............................................................................................................8
3.3 Quality Circle.......................................................................................................................8
4.0 basic tool for productivity measurement...................................................................................8
4.1 production quantity productivity measurement (PQPM) ........................................................8
4.2 production VALUE PRODUCTIVITY MEASUREMENT (PVPM)....................................................9
4.3 value added productivity measurement (vaPM)...................................................................10
5.0 analyzing productivity measurement......................................................................................12
5.1 analyzing trends and patterns.............................................................................................12
5.2 total factor productivity measurement................................................................................12
6.0 practicing productivity through basic tools and techniques......................................................13
6.1 improving the workplace through 5s...................................................................................13
Recognizing the needfor 5S:......................................................................................................13
Common Workplace Problems:..................................................................................................13
SEIRI(Sort): Take Out Unnecessary Items and Dispose..................................................................14
SEITON(Systematize): ARRANGE NECESSARY ITEMS IN GOOD ORDER...........................................15
SEISO(Sweep): CLEAN YOUR WORKPLACE...................................................................................15
SEIKETSU(Sanitize): MAINTAIN HIGH STANDARD OF HOUSEKEEPING............................................16
SHITSUKE(Self-Discipline): THINGS GO SPONTANEOUSLY WITHOUT BEING TOLD OR ORDERED......17
Key Steps in Implementing 5S: ...................................................................................................18
Factors Leading to the Success of 5S:..........................................................................................19
6.2 Suggestion scheme ............................................................................................................19
Definition of Suggestion Scheme:...............................................................................................19
Why the Need for Suggestion Scheme:.......................................................................................19
Objectives of the Suggestion Scheme: ........................................................................................20
Benefits of Suggestion Scheme:..................................................................................................20
Benefits of Suggestion Scheme for Management:........................................................................20

Benefits of Suggestion Scheme for Employees: ...........................................................................20
Requirements of Suggestion Scheme:.........................................................................................21
Ideas that are encourages and welcomed for Suggestion Scheme: ...............................................21
Guide in Formulating Suggestions:..............................................................................................21
Suggestion Form:......................................................................................................................21
Feedback Form A:......................................................................................................................22
Feedback Form B:......................................................................................................................22
Feedback Form C:......................................................................................................................23
Suggested Evaluation Criteria :...................................................................................................24
Award Categories :....................................................................................................................24
Roles of the Suggestion Scheme Committee :..............................................................................25
6.3 Quality Circle.....................................................................................................................25
What is Quality Circle?...............................................................................................................25
7 Basic Features of QC? .............................................................................................................25
Benefits of QC/Small Group Activities.........................................................................................25
QC Story ...................................................................................................................................26
Theme Selection........................................................................................................................27
7 basic Quality Circle Tools.........................................................................................................27
7 New Quality Circle Tools .........................................................................................................28
What is a QC Problem?..............................................................................................................29
Stagesin defining a Problem......................................................................................................29
Checklist for Problem Identification............................................................................................30
ProblemPrioritization................................................................................................................31
Why is Prioritizing Problems Important?.....................................................................................31
Tools and Techniques used in PrioritizingProblems.....................................................................31
ProblemAnalysis.......................................................................................................................33
Tool Used in Problem Analysis....................................................................................................33
 Cause and effect diagram...................................................................................................33
Steps in Preparing a Cause and Effect Diagram............................................................................33
 5 Whys..............................................................................................................................34
Solution Formulation and Implementation..................................................................................34

Solution Formulation.................................................................................................................34
Why set an Objective.................................................................................................................34
Solution Formulation Tools and Technique Matrix.......................................................................35
7.0 conclusion.............................................................................................................................36
8.0 reference..............................................................................................................................36

1.0 INTRODUCTION
1.1. PRODUCTIVITY AS A TECHNICAL CONCEPT
As a technical concept,Productivityisthe ratioof Outputsproduced(whichcontribute tothe
accomplishmentof the mission),perunitof resourcesconsumed(Input),comparedtoasimilarratio
froma base period,withthe same orincreasedquality.
Productivity can be Partial which is the ratio of Output to a single input or Total which
is the ratio of Output to all the inputs used in the production process.

2.0 WHY DO WE NEED TO MEASURE PRODUCTIVITY?
A manageror entrepreneurwhoseekstoimprove the firmsprofitability,competitivenessorseeks
businessexcellence musthave aconcrete basisuponwhichhisplanof action will be guided.
In firmsor organizations,productivityismeasuredtohelpanalyze effectivenessandefficiency.Its
measurementcanstimulate operational improvement.
Productivitymeasurementsindiceshelpestablishrealistictargetsandcheckpointsfordiagnostic
activitiesduringthe implementationof aproductivityimprovementprogram/planorduringan
organizationdevelopmentprocess,pointingtobottlenecksandbarrierstoproductivity/performance
improvement.Thiswillenablethe firmtocontinuouslyimprovetheirperformance throughoutthe
years.

Productivityindicesare alsouseful ininter-firmandinter-sectoral comparisonsdesignedtodetect
factors accountingforsuccessor failure.
3.0 BASIC PRODUCTIVITY IMPROVEMENT TOOLS
 Quality Circle
 Suggestion Scheme
 Labor Management Cooperation
 Industrial Engineering
 Morale Survey
Some of the explanationof popularAgileMethodologies.
3.1 5S
5S is veryeffectiveinbuildingamindsetof productivityandqualityimprovement.Itpromotesself
disciplinein makingthingsorganizedinthe workplace thatleadstosmoothandeasierwayof doing
things.
 SEIRI – SORT: Take Out Unnecessary Items and Dispose.
 SHITSUKE – SELF-DISCIPLINE.: Do things spontaneously without being told or
ordered.
 SEISO-SWEEP: Clean your workplace..
 SEITON-SYSTEMATIZE: Arrange Necessary Items in Good Order.
 SEIKETSU-Sanitize: Maintain High Standard of Housekeeping

3.2 SUGGESTION SCHEME
It enhancestwo-waycommunicationinOrganizationbetweenemployerandemployees.Itallows
employeesto expressideasforimprovementthatcanbe consideredbyemployerinmakingproductivity
and qualityimprovementactiontowardshigherproductivity.
3.3 QUALITY CIRCLE
It isa small groupof employeesfromthe same workplace organizedtoparticipate in mutual
developmentandproblemsolvingactivitiesthatwouldhelpimprove productivityandqualityof an
organization.
4.0 BASIC TOOL FOR PRODUCTIVITY MEASUREMENT
 Production Quantity Productivity Measurement(PQPM)
 Production Value Productivity Measurement(PVPM)
 Value Added Productivity Measurement(VAPM)
4.1 PRODUCTION QUANTITY PRODUCTIVITY MEASUREMENT (PQPM)
In the PQPM, the outputismeasuredintermsof quantityor physical whilethe inputsare either
measuredinphysical unitsorinmoneyof input.
Productivityismeasuredas:
Quantityof Outputs(Unitof Measure)
--------------------------------------------------
Quantityof Inputs(Unitof Measure)

4.2 PRODUCTION VALUE PRODUCTIVITY MEASUREMENT (PVPM)
The market value of goodsandservicesproducedisusedmeasure of outputinPVPM.The measure of
inputsmaythe cost of inputsor the physical unitsof inputsusedinProductionprocess.
ProductionValue =Total OperatingRevenue +Change inInventoryof FinishedGoodsandWork in
Process.
Productivityismeasuredas:
ProductionValue (inmonetarycurrency)
--------------------------------------------------
Cost of Input(inmonetaryvalue)
By usingthe physical inputsinthe productivityratio,we canalsodetermine the monetaryvalue of
productivityof aspecificfactorinputlike labor.
The alternative ratiois:
ProductionValue (inmonetarycurrency)
--------------------------------------------------
Unitsof Physical Inputs

4.3 VALUE ADDED PRODUCTIVITYMEASUREMENT (VAPM)
Value added isthe “Wealth”createdbythe productsservicesgeneratedbyanorganization.
Value-Addedisthe value createdbythe firmoutof goodsandboughtfrom the outside.Inthistool,
outputismeasuredbyvalue createdbythe firm.The inputsusedto calculate the productivityratioare
measuredeitherbycostsorphysical quantityof inputs.
There are twowaysof calculatingvalue added:the Subtractionmethodandthe additionmethod.
SubtractionMethod:
Value Added=Total OperatingRevenue –(Raw MaterialsCost+PaidExpenses+Costs) +(opening
Inventory –EndingInventory)
AdditionMethod:
Value Added=Personnel Expenses+Financial Cost+ Rent+ DepreciationCost+Taxes+ Net+ Other
Non-OperatingExpenses.
Subtractionmethodismore convenientto use as itdeductsthe cost of intermediategoodsandservices
fromthe marketvalue of the firm’sproduct,itisa more accurate measure of productivitycomparedto
the product value approach.
The VAPMcan be calculatedby:
UsingPhysical quantityasinputs:

Value Added
--------------------------------------------------
Quantityof Physical Inputs
Usingcost as inputs:
Value Added
--------------------------------------------------
Cost of Inputs
Examplesof ProductivityCalculation

5.0 ANALYZING PRODUCTIVITYMEASUREMENT
In orderto analyze the ratiosinProductivityMeasurement,itisnecessarythatwe monitorthe ratiosat
regularintervalsdependingonthe ease incollectingdataandthe pace at whichthe company can
respondtoimprove itsproductivityperformance.
Productivityimprovementisadynamicprocessjustlike Kaizenwhere productivityimprovementisa
continual process.Inthe P=D-C-A cycle,
productivitymeasurementisusedinC – checkingthe statusof the company’sproductivityperformance
and isalsousedin P-Planningthe targetforproductivityimprovement,how muchproductivitythe firm
wants.
5.1 ANALYZING TRENDS AND PATTERNS
Productivitymeasurementdoesnotmeananythingif we donotlookat the trendsand patternsovera
periodof time.
The level of detailsalsohelpsinthe analysis.
5.2 TOTAL FACTOR PRODUCTIVITY MEASUREMENT
A decliningtrendintotal factorproductivitymeansthatthe overall productivityof the companyisfalling
and itis notusingits resourcesefficiently.
But it doesnotshowwhichresource isnotbeingusedefficientlyandthe levelextentof itsinefficiency.
It istherefore necessarytoanalyze andstudythe partial factorproductivity.Bydoingso,the company
can determine whichfactorshouldbe givenpriorityattentiontoimprove theirproductivity.

6.0 PRACTICING PRODUCTIVITY THROUGH BASIC TOOLS AND TECHNIQUES
6.1 IMPROVING THE WORKPLACE THROUGH 5S
5S is a systematizedapproachto:
 Organize work areas.
 Keep rules and standards.
 Maintain discipline.
5S utilizes:
 Workplace organization.
 Work Simplification techniques.
5S practice:
 Develops positive attitude among workers.
 Cultivates an environment of efficiency, effectiveness and economy.
Recognizing the need for 5S:
 Like other productivity tools it is important to identify/recognize the problems that
can be addressed by 5S.
 These problems/gaps are actually considered as the ‘Triggers’ for 5S.
Common Workplace Problems:
 Inconsistent cleanliness, orderliness (e.g. cluttered work areas).
 Difficulty in retrieving files of proper labeling of items/files)

 Inadequate space.
 Things are not put in proper place or storage area.
SEIRI(Sort):Take Out Unnecessary Items and Dispose
Selectwhatisnecessaryanddispose unnecessaryitemsproperly.
KeyPrinciples:
 Waste Elimination.
 Stratification Management.
 Dealing with Causes.
a) Criteria for sorting.
b) Disposal Tag.
c) Designated Storage Area.
d) Disposal Procedure.
e) Akafuda (Red Tag) operation.
f) Material List

SEITON(Systematize):ARRANGE NECESSARY ITEMS IN GOOD ORDER
Organize necessaryitemsforeasyandfastretreival.
KeyPrinciples:
 Functional Storage.
 A place for everything.
 Search Elimination.
Some SEITON Practices:
 Follow the first-in-first-out(FIFO) method for storing items.
 Assign each item to a dedicated location.
 All items and their locations should be labelled systematically.
SEISO(Sweep):CLEAN YOUR WORKPLACE
Cleanthe workplace andequipment.

KeyPrinciples:
 Cleaning as a way of purifying the spirit.
 Cleaning as Inspection.
 Elimination of minor Defects.
Some SEISOPractices:
 Practice 5-10 minutes of Seiso daily.
 Assign an owner to each equipment.
 Combine cleaning(Seiso) with inspection.
SEIKETSU(Sanitize):MAINTAIN HIGH STANDARD OF HOUSEKEEPING
Maintaina high standard of housekeepingandworkplace organizationatall times.
KeyPrinciples:
 Visual Management.
 Standardization.
Some SEIKETSU Practices:
 Visual Control Signs
 Colour Coding.

SHITSUKE(Self-Discipline): THINGS GO SPONTANEOUSLY WITHOUT BEING
TOLD OR ORDERED

KeyPrinciples:
 Habit Formation.
 Disciplined Workplace.
 Empowerment of Workers
Some SEITSUKE Practices:
 Greet people with a smile.
 Be a good listener.
 Be Kaizen-oriented.
 Demonstrate team spirit.
Key Steps in Implementing 5S:

Factors Leading to the Success of 5S:
 Strong support from Organization’s leadership.
 Active Promoter.
 Good Example by Management.
 Regular Audits.
 Good Documentation.
 Competition.
 Visits by External people/consultants.
 Turn PDCA.
6.2 SUGGESTION SCHEME
Definition of Suggestion Scheme:
It isa systematicapproachtosolicitideasforimprovement.
Why the Need for Suggestion Scheme:
Recognizingproblemsthattriggerthe needforSuggestionScheme.
 Like the other productivity tools and techniques such as 5S, it is important to
identify and recognize the problems/gaps that can be addressed by Suggestion
Scheme (SS).
 These problems/gaps are actually considered as ‘triggers’.

Objectives of the Suggestion Scheme:
 To establish a strong flow of two-way communication between management and
employees.
 TO improve productivity and quality of products and services of the organization.
Benefits of Suggestion Scheme:
 Good flow of communication.
 Improved workplace vitality.
 Improved Operations.
Benefits of Suggestion Scheme for Management:
 Information for reviewing and improving the organizations policies and
procedures.
 Chance of discovering excellent caliber employees.
 Information on employees training needs.
Benefits of Suggestion Scheme for Employees:

 Self-development.
 Recognition.
 Satisfaction.
Requirements of Suggestion Scheme:
 SS Organizational Structure.
 SS Implementing Guidelines.
 Promotional and Educational Campaign.
 Evaluation and Improvement of Scheme.
Ideas that are encourages and welcomed for Suggestion Scheme:
 Improving work systems and procedures.
 Efficient and effective allocation and utilization of resources.
 Encourage employees participation.
 Improve working conditions.
 Enhance working climate.
 Improve employee morale.
Guide in Formulating Suggestions:
 OBSERVE the surroundings.- (4M 1E : Man, Machine, Material, Method,
Environment)
 INVESTIGATE current situation – (5W2H: Why? What? Where? Who? When?;
How? How many/Much?)
 THINK of alternative ways.
 SELECT the best approach.
 Is it Cost-Effective?
 What potential benefits can be gained from it?
 Is it doable?
Suggestion Form:

Feedback Form A:
Feedback Form B:

Feedback Form C:

Suggested Evaluation Criteria :
Award Categories :

Roles of the Suggestion Scheme Committee :
 Prepare the Guidelines.
 Objectives.
 Rules and regulations.
 System for receiving suggestions and providing feedback.
 Evaluation criteria.
 Awarding, commendation and publicity.
 Prepare the Suggestion Form.
 Inform employees through bulletin boards, newsletter circulars.
 Create awareness by encouraging employees to give a name for the scheme.
6.3 QUALITY CIRCLE
What is Quality Circle?
Is a small groupof employeesfromthe same workplaceorganizedtoparticipate inmutual development
and problemsolvingactivitiesthatwouldhelpimprovequality&productivityof the organization?
7 Basic Features of QC?
 Voluntary in nature.
 Small in Size.
 Homogeneous in membership.
 Projects within control.
 Systematic and scientific in Approach.
 Continuing in activity.
 Universal in application.
Benefits of QC/Small Group Activities

QC Story

Theme Selection
7 basic Quality Circle Tools

7 New Quality Circle Tools

What is a QC Problem?
QC problemcouldbe a maintenance oranImprovementtype of aproblem.
Stages in defining a Problem

Checklist for Problem Identification
PQCDSM
 Is Productivity a problem?
 Is Quality a problem?
 Is Cost a problem?
 Is Product Delivery a problem?
 Is Safety a problem?
 Is Morale a problem?

Problem Prioritization
 Select focus area.
 List all possible problems.
 Validate problems.
 Classify problems according to controllability.
 Prioritize problems.
Why is Prioritizing Problems Important?
 To show the seriousness and degree of importance of solving a problem over
other problems.
 Because of limited manpower, time and money.
 To ensure undivided attention and full concentration in solving the problem.
Tools and Techniques used in Prioritizing Problems
 Consensus Decision-Making.

 Finding an idea or proposal acceptable enough that all members
can support it.
 Having a free and open exchange of ideas which continue until
agreement is reached.
 Each individual’s concerns are heard and understood.
 Conclusion may not reflect exact wishes of each person but does
not violate the deep concerns of everyone.
 Matrix Decision Chart or Matrix Diagram.
 It is tool used to structure a problem & examine the relationship of
two or more sets of factors..
 It is useful in setting priorities & highlighting significant items.
 Pareto Diagram.
This graphictool presentscausesof problemsfrommosttoleastsignificant.It
isbasedon the principle of “the vital few andthe trival many”(80-20 rule):that
means80% of the problemiscontributedby20% of the causes.

Problem Analysis
 Brainstorm for possible causes.
 Show relationship among causes.
 Validate causes.
 Identify and classify root causes according to controllability.
 Select major root causes.
Tool Used in Problem Analysis
 Cause and effect diagram
Cause and EffectDiagram,alsoknownas Fishbone Diagram.
A schematicdiagramthatshowsthe systematicrelationshipbetweenaproblemoreffectanditscauses.
Steps in Preparing a Cause and Effect Diagram
i. Write the effect on the right-most part and connect it into the spine.
ii. Identify the major causes or groups of causes. Write them into the large bones.
iii. Identify the causes under each major causes or group of causes by asking the
question “why” five times at the most. Write each causes into the middle & small
bones.
iv. Determine controllable and uncontrollable root causes.

 5 Whys
Solution Formulation and Implementation
 Set Objectives.
 Generate alternative solutions per root cause.
 Choose best solution.
 DO a Potential Problem Analysis.
 Detail out implementation of solution.
 Present project to management for approval.
Solution Formulation
Why set an Objective
 To define the result areas in implementation of the project.
 To help establish priorities in terms of impact on the unit.
 To monitor progress of the project.

Solution Formulation Tools and Technique Matrix

7.0 CONCLUSION
The documentwill enablethe readertounderstandthe basicconceptof implementationof Basic
ProductivityImprovementtechniquesanditsimplementationprocess.
8.0 REFERENCE
1) Asian Productivity Organization
2) Internet.

Improve Workplace Productivity with Basic Tools

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