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Standardization(work study & measurement)

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Standardization(work study & measurement)

  1. 1. STANDARDIZATION
  2. 2. What is Standardization?
  3. 3.  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.
  4. 4. Benefits of Standardization
  5. 5. 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.
  6. 6. 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
  7. 7. 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.
  8. 8. The Universe of the Standardization International Regional National Ma nag em ent Sectoral Company Ele ctr ica l Foo Agr icul Fo d ind tur re ust e str ry y Terminology Technical Specifications Sampling and control Testing and analysing Reduction of the variety Grading Codes of Good Practices Ch Tex emi tile cal ind pro ust duc ts ry Infor matio n Techn ology Educa tion and Traini ng
  9. 9. 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.
  10. 10. Work Standardization
  11. 11. • 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.
  12. 12. Elements of Work Standardization • Takt time – Demand Rate • Cycle Time – Production Time • Work Sequence
  13. 13. What is Takt Time? Takt Time - the demand rate of production, the rate at which we sell our product or service.
  14. 14. The Tools for Work Standardization  Process Instruction Sheets  Standardized Work Analysis Sheet (Cell Layout)  Time Observation Sheet  Operator Balance Chart  Standard Work Combination Sheet
  15. 15. 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.
  16. 16. Standardized Work Cell 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
  17. 17. 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.
  18. 18. Standardized Work Combination Sheet Part Number 98-097-654 Part Name HT Injection Manifold Work Sequence Step Operation Obtain Manifold from 1 conveyor Time 15 5 2 Place in Wash Tub 10 Press Button to start wash 3 tub 1 1 10 9 Place valves on manifold Obtain screws and hand 10 tighten Obtain torque wrench and 11 torgue to 50 ft lbs Record torque values on 12 tracker 8 13 Mask off valve assembly 9 14 Aside to pallet Move to conveyor to start 15 next assembly 4 10 6 2 5 2 5 10 7 3 8 5 95 10 Work Area 10-Mar-05 Manifold Assembly Daily Demand Takt Time 231 Units 117 Second Operation Time (seconds) Man Auto Walk 4 Wash Tub Cycle Obtain Manifold from 5 wash tub Place manifold on work 6 bench Obtain 4 valves from 7 stock area Remove packaging from 8 valves Date Prepared 21 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
  19. 19. What is process standardization?
  20. 20. 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.”
  21. 21. 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)
  22. 22. Why Process Standardization? • 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
  23. 23. 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)
  24. 24. 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)
  25. 25. 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
  26. 26. Product Standardization
  27. 27. 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.
  28. 28. Product Standardization Although 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
  29. 29. 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
  30. 30. 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
  31. 31. Basic Requirements for 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
  32. 32. Uniform vs. Adapted Product PREFER Line shows likelihood of Purchase Adapted Uniform REJECT Localized
  33. 33. Optimal Level Of Standardization Incremental manufacturing cost Fully adapted Combined costs Cost of lost sales Fully standardized
  34. 34. 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
  35. 35. 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

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